About XLI ETF
Overview:
The State Street Industrial ETF (XLI) invests companies that are focused on industrial products, including electrical & construction equipment, waste management and machinery and is managed by State Street Global Advisors that has a total AUM of $2.73T.
XLI is an exchange-traded fund incorporated in the USA in Dec 1998. It seeks to provide precise exposure to companies in the following industries: aerospace and defense; industrial conglomerates; marine; transportation infrastructure; machinery; road and rail; air freight and logistics; commercial services and supplies; professional services; electrical equipment; construction and engineering; trading companies and distributors; airlines; and building products.
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
Sector:
XLI has invested 100% of its assets in Industrials.
Geography:
XLI has invested 97% of its assets in the U.S. and just 3% in Ireland.
Recommended for:
Growth
XLI provides investors with US industrial exposure that's cheap to hold and extremely easy to trade. The fund selects from the S&P 500, limiting its small and midcap exposure and producing a large-cap portfolio. The fund's top holdings, performance, and overall riskiness are in line with the benchmark.
According to ETFdb.com, "Given the sector-specific focus, XLI likely doesn't deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the industrials sector or as part of a sector rotation strategy."
Additional Information:
1. Fund Factsheet
2. The I's Of March: There's Still A Case For Industrial ETFs
3. A high quality ETF in the Neutral Rated Industrials Sector
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house research/quant analysts team. XLI meets the needs of both traders and long-term investors with excellent trading volume and a low expense ratio. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.
