Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
Investors seeking industrials sector exposure can consider the sector-specific exchange-traded fund Industrial Select Sector SPDR XLI. This ETF holds aerospace and defense firms (27.5% of assets), industrial conglomerates   Read more 

Bull Case

This ETF is very liquid, with an average of 9.6 million shares traded daily.
This is a high-quality portfolio, with more than 90% 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 sequestration.
Weak global growth would weigh on many of the firms in this portfolio. Read more 

This ETF's Index Is a Victim of Its Own Success 
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