“Sector SPDR ETFs are very high-quality because they draw from the S&P 500 Index and have a very large-cap tilt. So XLI has a very high-quality portfolio,” Goldsborough added. “The industrials sector is cyclical, but many of the companies it holds have significant sales outside the United States, giving this fund some exposure to global growth trends.”
The top companies in the fund include General Electric 11.7%, United Technologies 5.5% and Union Pac 5.1%.
Industrial Select Sector SPDR
For more information on the industrials sector, visit our industrials category.
Max Chen contributed to this article.