Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
Investors seeking industrials-sector exposure in a diversified portfolio can consider the sector-specific exchange-traded fund Vanguard Industrials ETF VIS. The main subsectors covered in this fund are aerospace and defense   Read more 

Bull Case

At 0.14% per year, VIS has the cheapest expense ratio of any large and liquid industrials ETF.
The automotive, manufacturing, and homebuilding segments of the U.S. industrials sector all have posted very strong results of late. Europe's industrials sector also has rebounded some.
As the economic recovery continues, many of the late-cycle firms in this ETF should shine. Read more 

Bear Case

Production and orders have revealed tepid recent demand from U.S. manufacturers.
Recent industrial production and purchasing manager surveys have indicated reduced demand.
The aerospace and U.S. nonresidential construction segments have continued to struggle. Read more 

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