“What is evolving over time is our understanding of how much energy exposure industrial companies have,” Peter Stournaras, a portfolio manager at BlackRock, told the Financial Times. “People were originally looking at revenues directly at oil companies and now [are]looking at tangential exposure because oil capex is going down. For example, it is not an oil company but it might make a product that is supplied to an oil company.”

Moreover, the industrial space is being weighed down by a slowing global outlook and a strengthening U.S. dollar. The industrial space includes a large global exposure and the weakening overseas economies, notably in the emerging countries, are could weigh on demand. Furthermore, a strengthening U.S. dollar makes these exports more expensive to foreign buyers.

ETF traders who want to hedge against further weakness in the industrial space can also look to the ProShares UltraShort Industrials (NYSEArca: SIJ), which tracks the inverse 2x or -200% daily performance of the Dow Jones U.S. Industrials Index. SIJ has increased 16.6% year-to-date.

Industrial Select Sector SPDR

Max Chen contributed to this article.