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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 positive returns so far this year and over the past month, indicating recent strength in its holdings.
Strong Industrial Leaders in Top Holdings
Several major industrial names like Caterpillar, GE Vernova, Eaton, and Union Pacific have delivered strong gains, helping support the fund’s overall results.
Sector Diversification Within Industrials Theme
While focused on industrials, the fund also holds financial, technology, and materials stocks, which can help spread risk across related areas of the economy.
Negative Factors
Heavy U.S. Concentration
Almost all of the ETF’s assets are invested in U.S. companies, offering very limited geographic diversification.
Weakness in Key Financial Holdings
Large positions in Visa, Mastercard, and American Express have recently shown weak performance, which can drag on the fund’s returns.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for a passive ETF, meaning fees may take a slightly larger bite out of long-term returns compared with cheaper alternatives.

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

IYJ Summary

The iShares U.S. Industrials ETF (IYJ) tracks the Russell 1000 Industrials Index, focusing mainly on U.S. industrial companies that help power the economy through transportation, construction, aerospace, and manufacturing. It also holds some related financial and tech names. Well-known holdings include Visa, Mastercard, Caterpillar, and Boeing. An investor might choose IYJ to get diversified exposure to many leading industrial businesses in a single investment, aiming for long-term growth tied to economic activity. A key risk is that it is heavily tied to the industrial sector, so its value can rise or fall with changes in the economy and business spending.
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 an all‑U.S. play on industrial strength, but its story is being written by a few big names. Caterpillar and Eaton are doing the heavy lifting, with rising shares that reflect solid demand for machinery, power management, and infrastructure spending. GE Vernova has also been a bright spot, riding momentum in energy and grid-related themes. On the flip side, payment giants Visa and Mastercard have been lagging, acting as a mild brake on returns despite their strong businesses. Overall, the fund is concentrated in industrial leaders with a sidecar of financials.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Visa6.67%$131.04M$589.76B-8.25%
70
Outperform
Mastercard5.21%$102.42M$449.63B-5.25%
75
Outperform
Caterpillar4.91%$96.47M$386.56B169.91%
76
Outperform
GE Vernova Inc.3.87%$76.03M$308.81B202.72%
69
Neutral
GE Aerospace3.79%$74.41M$296.93B41.67%
72
Outperform
RTX2.97%$58.31M$234.67B38.93%
74
Outperform
Boeing2.24%$43.94M$183.23B26.90%
54
Neutral
American Express2.20%$43.29M$214.31B20.34%
80
Outperform
Eaton2.09%$41.06M$164.47B44.84%
75
Outperform
Union Pacific2.06%$40.43M$159.53B26.48%
72
Outperform

IYJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
154.13
Positive
100DMA
153.55
Positive
200DMA
148.93
Positive
Market Momentum
MACD
1.30
Negative
RSI
60.09
Neutral
STOCH
34.70
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 155.64, equal to the 50-day MA of 154.13, and equal to the 200-day MA of 148.93, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 34.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IYJ.

IYJ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.95B0.38%
72
Outperform
$9.91B0.69%
72
Outperform
$8.07B0.58%
70
Outperform
$7.73B0.09%
71
Outperform
$5.98B0.35%
67
Neutral
$2.06B0.08%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IYJ
iShares U.S. Industrials ETF
158.61
27.79
21.24%
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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