ETF Research and Analysis

by Adam McCullough, CFA
Industrial Select Sector SPDR XLI offers market-cap-weighted exposure to the largest U.S. industrials sector stocks. The fund’s low expense ratio and low turnover should benefit investors, but its lack of diversification   Read more 

Bull Case

At 0.14%, this fund charges one of the lowest fees in its category.
The fund’s turnover and market impact costs are low because it weights its holdings by market capitalization. Read more 

Bear Case

This concentrated portfolio exposes investors to firm-specific risk, which the market usually does not compensate.
This portfolio excludes many mid- and small-cap industrials stocks. The larger companies it holds tend to be more sensitive to global economic conditions and currency fluctuations.
This fund is highly sensitive to the business cycle. It may lag the S&P 500 during market downturns. Read more 

A Broader Bond Market for a Good Price 
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