Some exchange traded funds (ETFs) can be difficult to define. For example, "industrials" represent companies that produce and distribute goods and services but don’t fall into a specific niche. Some big name examples include General Electric (GE), United Technologies (UTX) and Caterpillar (CAT), says Gary Gordon for ETF Expert.
The ETF that tracks the Dow Jones industrial average, (DIA), contains all three of these companies as well as other well-known American corporations, such as McDonald’s (MCD) and and Wal-Mart (WMT). While the DIA is better at revealing how the overall market is performing, it’s considered a good gauge for how industrials are doing as well.
Other strictly industrial-based ETFs include the Industrial Select Sector SPDR (XLI) and the iShares S&P Global Industrials (EXI). Even with the market down last week, industrials have had a great year, as you can see from the chart below.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.