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IYJ - ETF AI Analysis

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IYJ

iShares U.S. Industrials ETF (IYJ)

Rating:72Outperform
Price Target:
IYJ, the iShares U.S. Industrials ETF, has a solid overall rating, mainly driven by strong, diversified leaders like Caterpillar, Honeywell, American Express, Visa, and Mastercard, which show healthy financial performance, growth initiatives, and generally positive outlooks. These strengths are partly offset by weaker names like Boeing, where financial challenges and program delays add risk, and by valuation concerns across several holdings, which could limit upside if growth slows. The main risk factor is exposure to a concentrated set of large industrial and related companies where high valuations and company-specific issues (like Boeing’s) can have an outsized impact on the fund.
Positive Factors
Solid Recent Performance
The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Mix of Strong Industrial and Financial Leaders
Several major holdings in industrials and related financial services, such as Caterpillar, RTX, Boeing, and GE-related stocks, have delivered strong or steady performance, helping support the fund’s returns.
Focused but Still Sector-Diversified Portfolio
While it is primarily an industrials fund, it also holds meaningful exposure to financials, technology, and materials, which helps spread risk across different parts of the economy.
Negative Factors
Heavy Weight in a Few Financial Giants
Visa, Mastercard, and American Express together make up a sizable portion of the fund, so weakness in these companies can have an outsized impact on performance.
Several Top Holdings Are Lagging
Some of the largest positions, including Visa, Mastercard, American Express, and Capital One, have shown weak year-to-date performance, which can drag on the ETF’s overall results.
High U.S. Concentration
With almost all assets in U.S. companies and very little exposure abroad, the fund is heavily tied to the health of the U.S. economy and market.

IYJ vs. SPDR S&P 500 ETF (SPY)

IYJ Summary

IYJ is the iShares U.S. Industrials ETF, which follows the Russell 1000 Industrials Index. It focuses mainly on U.S. industrial companies involved in areas like aerospace, construction, machinery, and transportation, but it also holds some financial and technology names. Well-known holdings include Visa, Mastercard, GE Aerospace, and Caterpillar. Someone might invest in IYJ to get diversified exposure to many companies that benefit from economic growth and infrastructure spending. A key risk is that it is heavily tied to the industrial sector, so its value can rise or fall sharply with changes in the economy and business activity.
How much will it cost me?The iShares U.S. Industrials ETF (IYJ) has an expense ratio of 0.38%, which means you’ll pay $3.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is passively managed but focuses on a specific sector, which can involve more targeted research and costs.
What would affect this ETF?The iShares U.S. Industrials ETF (IYJ) could benefit from increased infrastructure spending, advancements in manufacturing technologies, and strong performance in aerospace and defense, which are key areas within the industrial sector. However, rising interest rates or economic slowdowns could negatively impact industrial companies reliant on borrowing or cyclical demand, while regulatory changes in sectors like defense or construction might also pose risks.

IYJ Top 10 Holdings

IYJ is heavily tilted toward U.S. industrials but with an unusual twist: payment giants Visa and Mastercard sit in the driver’s seat, and their recently lagging share prices have been a headwind for the fund. On the industrial side, Caterpillar and Honeywell have been steadier engines of growth, helping offset some of that drag. Aerospace exposure is a mixed bag, with RTX and the newly energized GE Vernova rising, while GE Aerospace and Boeing feel more like turbulence than tailwind. Overall, it’s a U.S.-centric bet on industrial strength with a big swipe of financials.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Visa6.88%$139.74M$578.15B-2.88%
70
Outperform
Mastercard5.38%$109.43M$447.24B3.29%
75
Outperform
Caterpillar4.45%$90.45M$335.58B157.53%
76
Outperform
GE Aerospace4.07%$82.63M$302.78B72.15%
72
Outperform
RTX3.51%$71.30M$266.32B69.12%
74
Outperform
GE Vernova Inc.3.18%$64.70M$241.86B213.68%
69
Neutral
American Express2.18%$44.34M$209.92B30.50%
80
Outperform
Boeing1.99%$40.44M$166.73B52.89%
54
Neutral
Union Pacific1.97%$40.11M$145.70B16.94%
72
Outperform
Honeywell International1.96%$39.86M$145.07B21.74%
77
Outperform

IYJ Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
154.38
Negative
100DMA
151.16
Negative
200DMA
147.56
Positive
Market Momentum
MACD
-1.97
Negative
RSI
47.94
Neutral
STOCH
79.46
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYJ, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 148.99, equal to the 50-day MA of 154.38, and equal to the 200-day MA of 147.56, indicating a neutral trend. The MACD of -1.97 indicates Negative momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 79.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IYJ.

IYJ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.89B0.38%
72
Outperform
$8.60B0.69%
72
Outperform
$8.05B0.58%
71
Outperform
$7.19B0.09%
71
Outperform
$5.90B0.35%
67
Neutral
$1.88B0.08%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IYJ
iShares U.S. Industrials ETF
149.74
25.68
20.70%
AIRR
First Trust RBA American Industrial Renaissance ETF
PPA
Invesco Aerospace & Defense ETF
VIS
Vanguard Industrials ETF
XAR
SPDR S&P Aerospace & Defense ETF
FIDU
Fidelity MSCI Industrial Index ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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