If you’ve considered putting a portion of your portfolio in the Industrials sector, I’d like to demonstrate how I came up with what I believe are the best ETFs in this sector. But, before I get into the performance of the Industrials sector ETFs, I’d like to give a brief description of it. Because many ETFs can be classified into more than one sector, I have settled on using Morningstar’s categories in determining what sector an ETF belongs in. Morningstar describes the Industrial sector as: “Companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defense firms as well as companies engaged in transportation and logistics services. Companies in this sector include 3M, Boeing and Siemens.” Now, let’s move on to performance.
The oldest Industrial Sector ETF available is the Industrial Select Sector SPDR® Fund (XLI). XLI’s inception date was 12/16/1998. By using this ETF, we can back-test this sector with nearly 20 years of data and see how this it has held up through two major market downturns.
XLI vs. S&P 500 January 1999 – December 2017
Source: Portfolio Visualizer
Trimmed some more profits in our China / India holdings today. Price paid $29.19. Price sold $42.49.