Exchange traded funds tracking the industrial sector have been solid performers this year.

Buoyed by strength in the aerospace and defense industry and a rotation to value sectors away from momentum, industrial ETFs have rewarded investors, rebutting claims that after last year’s aerospace and the broader industrial complex was fully and fairly valued. [Hard to Go Wrong With Aerospace ETFs]

The Industrial Select Sector SPDR (NYSEArca: XLI), the largest industrial ETF by assets, is higher by 3.2% year-to-date, while the rival Vanguard Industrials ETF (NYSEArca: VIS) is up 2.9%. XLV and VIS are among the more familiar industrial ETFs, but a new fund offers a unique way of accessing this old line sector.

The First Trust RBA American Industrial Renaissance ETF (NasdaqGM: AIRR) debuted in March and with a focus on mid- and small-cap industrials, offers an alternative to its large-cap heavy rivals. AIRR also offers a twist: An almost 10% allocation to community bank stocks. [Community Bank ETF Soars]

AIRR tracks the Richard Bernstein Advisors American Industrial Renaissance Index.

“RBA believes there are increasing reasons to expect that the United States may regain industrial market share, based on a number of factors, including: access to cheap energy sources; the relative stability of the U.S. market compared to many emerging markets; and growing availability of bank financing for manufacturers,” according to a First Trust Statement.

“Smaller U.S. banks generally have strengthening balance sheets and continue to aid U.S. capital formation. Admittedly, traditional banking typically has lower profitability ratios, but smaller U.S. banks do not need massive trading infrastructures and unnecessary global risk-taking to be profitable,” according to First Trust.

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