Although the aerospace and defense industry is perceived as being beholden to Uncle Sam’s whims, the allure of late-cycle sectors, including industrials, in a rising rate environment remains in place. Industrials perform well when interest rates rise because rising rates can go hand-in-hand with economic growth. Increased infrastructure spending is also seen as a catalyst for industrial stocks and ETFs.

Related: Top 68 Inverse Equity ETFs

For DUSL, the near-term theme is clear: it’s all about earnings. This week, 16.58% of the S&P Industrial Select Sector Index reports third-quarter earnings and next week, that number jumps to over 58%, according to Direxion data.

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