The Industrial Select Sector SPDR Fund includes 28.7% aerospace & defense, 17.4% machinery, 15.3%, industrial conglomerates, 9.6% road & rail, 6.5% air freight & logistics, 5.8% electrical equipment, 4.7% airlines, 3.1% commercial services & supplies, 3.0% building products, 3.0% professional services, 1.9% trading companies & distributors and 1.0% construction & engineering.
“Higher input costs and a margin squeeze are the first order implications of tariffs,” Goldman Sachs analysts said in a note to clients. “Retaliation by U.S. trading partners is a second-order risk from tariffs.”
XLI is down 3.7% over the past month and 0.7% lower year-to-date partly due to the weakness from General Electric (NYSE: GE), which is down 18.4% year-to-date. GE is 3.7% of the fund’s underlying holding.
For more information on the industrial sector, visit our industrials category.