Dip into Industrials with this ETF

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

The Industrial Select Sector SPDR Fund (NYSEARCA: XLI) is an exchange-traded fund (ETF) that tracks stocks in the Industrial Select Sector Index.

XLI is considered to be a broad sector measure of industrial stocks. The index includes companies in aerospace and defense, industrial conglomerates, marine, transportation infrastructure, machinery, road and rail, air freight and the logistics and commercial services and supplies industries. The fund selects from the S&P 500, with limited exposure to small- and mid-cap stocks, which only account for a small fraction of its holdings.

The Industrial Select Sector SPDR Fund’s (NYSEARCA: XLI) top 10 holdings include Boeing Co. (NYSE: BA), 8.31%; Honeywell International Inc. (NYSE: HON), 5.54%; Union Pacific Corp. (NYSE: UNP), 5.22%; United Technologies Corp. (NYSE: UTX), 4.61%; 3M Co. (NYSE: MMM), 4.36%; General Electric Co. (NYSE: GE), 3.99%; Lockheed Martin Corp. (NYSE: LMT), 3.90% Caterpillar Inc. (NYSE: CAT), 3.40%; United Parcel Services Inc. Class B (NYSE: UPS), 3.14%; and CSX Corp. (NASDAQ: CSX), 2.59%.

Another crucial factor in the industrial sector resides on the trade front, especially with China. After a supposed trade truce was reached between the United States and China, U.S. officials are traveling to China next week at the start of a six-week congressional recess to continue their lengthy trade negotiations.

The truce may have had a somewhat positive effect on XLI’s share price, as it’s up 1.51% in the past month. A recent ETF Channel analysis claims XLI’s share price has about a 7% upside and could reach as high as $83.92 in the next 12 months. XLI currently is up more than 21% year to date, as you can see in the chart below.

Exclusive  A Crisis of Clarity Rippling Through Regional Banks  

Chart courtesy of StockCharts.com

The Industrial Select Sector SPDR Fund (NYSEARCA: XLI) currently has a 1.99% yield that pays out a quarterly dividend of $0.337. Its ex-dividend date is Sept. 20.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

share on:

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor