4 BUY Industrial ETFs with a Bright Future
Industrial ETFs include investments that aim to track indexes in Aerospace, Defense, Building, Construction, and Transportation. Each of the ETFs below try to replicate the performance of indexes in at least one of these categories.
Given the promises of the President-elect, it is quite possible these highly rated ETFs will benefit from a governmental policy of U.S. Investment.
PowerShares Aerospace & Defense Portfolio (PPA) is a B rated fund with investments that generally correspond to the price and yield of the SPADE® Defense Index. It offers a good reward and has a fair risk level, with the five-year total return of 144 percent.
Vanguard Industrials Index Fund ETF Shares (VIS) also holds a B- investment rating and aims to track the performance of the MSCI US Investable Market Index (IMI)/Industrials 25/50, the index made up of all sizes U.S. companies within the industrial sector. This fund has produced a 103 percent five-year return.
Industrial Select Sector SPDR® Fund (XLI) currently holds a B rating from Weiss and seeks to provide investment results that correspond to the price and yield performance of publicly traded companies in the Industrial Select Sector Index. It offers good reward with not too much risk involved, recording a 99.6 percent five-year total return.
iShares U.S. Industrials ETF (IYJ) is at the bottom of the BUY range, with a B- investment rating. The fund aims to mimic the investment results of the Dow Jones U.S. Industrial Index. The fund offers investors a good return with a fair risk level. The five-year return is at 99.5 percent.
These four ETFs have investments in companies such as, Boeing, Lockheed Martin, General Electric, Honeywell, and United Technologies. All of which could benefit from an increase in the military and infrastructure spending, promised by president-elect Donald Trump. The better these companies do, the better the ETFs holding them will perform.