The Richard Bernstein Advisors American Industrial Renaissance Index culls potential constituents from the Russell 2500 Index, eliminating companies that are not direct manufacturing, infrastructure or community banking plays.
AIRR’s bank allocation is capped at 10% and the ETF’s bank holdings hail from states that viewed as industrial and manufacturing heavy.
With a median market value of $1.2 billion and no holdings with market caps in excess of $8.46 billion, AIRR does a fine job of dodging large-caps as its mission statement dictates.
Even with the emphasis on mid- and small-caps, AIRR’s valuations are not too excessive relative to rival industrial ETFs. For example, the new First Trust offering, which has quickly amassed $33.8 million in assets, sports a P/E ratio of 20.2 and a price-to-book ratio of 2.06. Those numbers on XLI are 17.2 and 3.28. [Industrial ETFs Captivate Investors]
AIRR Top-10 Holdings
