Rivals to XLI include the Fidelity MSCI Industrials Index ETF (NYSEArca: FIDU), iShares U.S. Industrials ETF (NYSEArca: IYJ) and the Vanguard Industrials ETF (NYSEArca: VIS)
“Craig Johnson, technical analyst at Piper Jaffray, says the charts suggest another 5 to 6 percent worth of upside for the XLI, the ETF tracking the sector,” reports CNBC.
Related: Lingering Issues For Industrial ETFs
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.
Still, the recent strength displayed by some of the following industrial ETFs could be a sign of more upside to come for the sector.
“Zachary Karabell, head of global strategy at Envestnet, also sees the rally in industrials as being far from over, though how big the climb will be remains unclear,” reports CNBC.