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 Industrial Select Sector SPDR. This ETF is suitable as a complementary satellite holding in   Read more 

Bull Case

At 0.18%, XLI is one of the cheapest options for exposure to the industrials sector.
This ETF is also very liquid, with an average of 13.4 million shares traded daily.
U.S. manufacturing activity has been expanding. Read more 

Bear Case

Defense companies can alter the expected cyclical performance of XLI and currently are facing issues from sequestration.
Debt problems in European countries could weigh on the performance of this fund. Read more 

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