The Industrial Select Sector SPDR FundNYSE American: XLI

The industrial sector (XLI) has faced challenges, with industrial production falling 0.6% in July due to the impact of Hurricane Beryl. Gabelli Funds portfolio manager Brian Sponheimer joins Market Domination to discuss strategies for investing in industrial stocks.

Industrials sector drives economic growth globally, with potential for future growth or topping formation. Industrial Select Sector SPDR Fund offers exposure to top companies in aerospace, defense, machinery, transportation, and more. XLI provides targeted sector exposure, but carries risks due to cyclical nature of industrial sector and potential for disruptive technologies.

Stock market volatility increasing, rotate to low volatile sectors like industrials. Industrials sector is fundamentally sound with prospects of steady economic expansion and double-digit earnings growth. XLI  offers targeted exposure to top-performing industrials stocks, better investment option than VIS and IYJ.

XLI has tracked the S&P500 closely over the last year, but has recently diverged. The divergence provides insight into some of the dynamics in the broader market. XLI could catch up with SPY in the coming weeks, depending on economic data.

Launched on 12/16/1998, the Industrial Select Sector SPDR ETF (XLI) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Broad segment of the equity market.

The Industrial Select Sector SPDR ETF (XLI) was launched on 12/16/1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.

XLI tracks the performance of the U.S. industrial sector, which should be underpinned by state funding programs. The aerospace & defence industry could benefit the most, but it's not the primary focus of XLI. XLI deserves a Hold rating, as the upside potential of up to 5% could still appear.

Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Industrial Select Sector SPDR ETF (XLI), a passively managed exchange traded fund launched on 12/16/1998.

The market has seen positive performance in 2023, with the S&P 500 up 22.6% and the Invesco QQQ Trust ETF up 52.7% year to date. The industrial sector, represented by the Industrial Select Sector SPDR Fund ETF, has hit an all-time high with a 13.5% increase this year and a 9.1% increase in the past month. Industrial companies like Union Pacific, Boeing, Honeywell International, Caterpillar, and General Electric have seen strong performance, as have others.