Historically, the industrials fare the worst in bearish market conditions, but the sector recovers more than the broad market in bull rallies.
Defense contractors also make up about 8% of the fund, which could perform if Middle East tensions escalates.
The Capital Strength ETF was previously known as the the First Trust Strategic Value Index Fund (NYSEArca: FDV). FDV was revamped earlier this year. [First Trust Revamps Strategic Value Index ETF]
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.