S&P also raised its ranking on industrials sector ETFs, including:
- Industrial Select Sector SPDR Fund (NYSEArca: XLI). Top component holdings General Electric (NYSE: GE), United Parcel Services (NYSE: UPS), United Technologies (NYSE: UTX) and Caterpillar (NYSE: CAT). The ETF has a 0.20% expense ratio.
- iShares Dow Jones U.S. Industrial Sector Index Fund (NYSEArca: IYJ). The fund’s top holdings also include GE, UTX, CAT, UPS and 3M Co. (NYSE MMM). IYJ has an expense ratio of 0.47%.
- Vanguard Industrials Index Fund (NYSEArca: VIS). Top holdings include GE, UTX, CAT, MMM and UPS. VIS has an expense ratio of 0.19%.
The three are weighted toward the aerospace and defense, machinery and industrial conglomerates sub-sectors.
“These ETFs offer strong, diversified exposure to the industrials sector, which S&P Capital IQ is recommending,” Todd Rosenbluth, S&P Capital IQ ETF analyst, said in the note.
Industrial Select Sector SPDR Fund
For more information on the market sectors, visit our sector ETFs category.
Max Chen contributed to this article.