“Fundamental indicators reflect support for the aerospace and defense industry, a key space in the industrials sector,” according to ETF Daily News. “Demand appears strong for aircraft globally. Additionally, with corporate tax-cuts in the U.S., we expect stronger demand for smaller airplanes to grow. Finally, an increase in defense spending domestically should also bode well for the industry.”


“Other industrial industries should also benefit from growing demand as global economies improve and stabilize. As demand and output remain stable, transports should see support. A successful infrastructure spending bill would provide a further boost to equities in the industrial sector,” according to ETF Daily News.

Rivals to XLI include the Fidelity MSCI Industrials Index ETF (NYSEArca: FIDU), iShares U.S. Industrials ETF (NYSEArca: IYJ) and the Vanguard Industrials ETF (NYSEArca: VIS).

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