Additionally, the industrial sector ranks as second-best behind consumer discretionary in terms of returns when interest rates rise. That is something to consider if tapering talk comes back.
With an expense ratio of 0.14% per year, the $1.3 billion VIS is the cheapest of the ETFs highlighted by S&P Capital IQ. XLI is the largest with $6.8 billion in assets. In addition to Boeing and United Technologies, XLI’s top-10 holdings include three other Dow stocks – General Electric (NYSE: GE), 3M (NYSE: MMM) and Caterpillar (NYSE: CAT).
GE, United Technologies, Boeing, 3M and Caterpillar, in that order, combined for 26.4 of Vanguard Industrials ETF’s weight at the end of August, according to issuer data.
Vanguard Industrials ETF
ETF Trends Editorial Team contributed