XLI ETF

Market analysts are paying more attention to the industrial sector (XLI) as a strong investment option. Ines Ferré, a Senior Markets Reporter at Yahoo Finance, looks at the sector's performance in 2024 and the important trends that will influence it in 2025, such as the growth of domestic manufacturing, advancements in commercial aerospace, and the effects of deregulation. For additional expert opinions and market analysis, you can find more on Morning Brief here. This article was authored by Angel Smith.

XLI is a well-diversified ETF within the industrials sector, avoiding heavy reliance on a few stocks unlike other S&P 500 sectors. Despite the high-risk environment, XLI's diversified holdings and stable businesses make it a valuable tactical position with strong potential returns. My hold rating on XLI reflects the current market's disregard for traditional valuation metrics, emphasizing the ETF's balanced reward/risk tradeoff.

The market had a great year and might continue to do well, as positive feelings are supported by recent strong performance and past patterns.

I reiterate a buy rating on the Industrial Select Sector SPDR Fund ETF due to fair valuation, strong momentum, and bullish seasonality trends. XLI has grown significantly, with assets under management rising to $19.8 billion, and offers diversified exposure across various industrial sectors. Despite a higher valuation with a P/E ratio nearing 22x, the long-term EPS growth of 11% keeps the PEG ratio reasonable.

XLI provides exposure to the U.S. industrial sector, which could benefit from ample state funding and a pivot in the monetary cycle. The fund shifted its main allocation focus to the aerospace and defence industry, which is poised to rise amid growing prospects for the aviation industry and geopolitical tensions. My rating of XLI remains Hold, despite an improved upside potential of 7%.

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.

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.