Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
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 transport segments of the U.S. industrials sector all have shown signs of strength of late.
The housing sector appears to be starting another rebound. Read more 

Bear Case

The aerospace and U.S. nonresidential construction segments have continued to struggle.
Defense companies can alter the expected cyclical performance of XLI and currently are facing reduced government spending because of sequestration.
Europe and China remain weak. Read more 

Foreign-Stock Exposure Without the Currency Risk 
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