Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
Investors seeking industrials 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 firms   Read more 

Bull Case

At 0.12% per year, VIS has the cheapest expense ratio of any large and liquid industrials ETF.
This is a high-quality portfolio, with more than 72% of assets invested in firms with economic moats.
As the economic recovery continues, late-cycle firms in this ETF could shine. Read more 

Bear Case

The aerospace and U.S. nonresidential construction segments have continued to struggle.
Defense companies currently are facing reduced government spending because of U.S. budget sequestration.
Weak global growth would weigh on many of the firms in this portfolio. Read more 

Online Giants in a Single Fund 
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