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VIS - ETF AI Analysis

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VIS

Vanguard Industrials ETF (VIS)

Rating:71Outperform
Price Target:
VIS, the Vanguard Industrials ETF, earns a solid overall rating largely because several major holdings like Honeywell, Caterpillar, and Eaton show strong financial performance, positive earnings outlooks, and strategic growth initiatives that support long-term strength. However, weaker names such as Boeing, with ongoing financial and operational challenges, and companies facing valuation and cash flow concerns, modestly weigh on the fund’s appeal. The main risk factor is its concentration in industrial businesses, which can make the ETF more sensitive to economic cycles and sector-specific issues.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, indicating that its industrial focus has recently been rewarded by the market.
Leading Industrial Holdings
Several of the largest positions, such as Caterpillar, GE Vernova, Eaton, Deere, Union Pacific, and Parker Hannifin, have shown strong performance, helping drive the fund’s overall results.
Low Expense Ratio
The fund’s expense ratio is low, which helps investors keep more of their returns over time compared with higher-cost alternatives.
Negative Factors
Heavy Concentration in Industrials
With the vast majority of assets in the industrials sector, the ETF is highly sensitive to downturns in that part of the economy.
Limited Geographic Diversification
Almost all of the fund’s holdings are in U.S. companies, so investors get little diversification across different countries and regions.
Mixed Performance Among Top Holdings
Some key positions, including Boeing and Uber, have shown weak performance, which can offset gains from stronger holdings and add volatility.

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

VIS Summary

Vanguard Industrials ETF (VIS) is a fund that follows the MSCI US IMI 25/50 Industrials index, giving you broad exposure to U.S. industrial companies. It owns well-known names like Caterpillar and Boeing, along with many other firms in areas such as aerospace, construction, transportation, and manufacturing. Investors might consider VIS if they want to tap into economic growth and infrastructure spending while spreading their money across many industrial businesses instead of picking individual stocks. 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 Vanguard Industrials ETF (VIS) has an expense ratio of 0.09%, which means you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it’s passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?The Vanguard Industrials ETF (VIS) could benefit from increased infrastructure spending, technological advancements in manufacturing, and growth in transportation and aerospace industries, which align with its top holdings like GE Aerospace and Caterpillar. However, it may face challenges from rising interest rates, which can increase borrowing costs for industrial companies, and economic slowdowns that could reduce demand for construction and manufacturing. Regulatory changes or geopolitical tensions could also impact its performance, given its heavy focus on U.S.-based industrials.

VIS Top 10 Holdings

VIS is very much an industrials story, with U.S.-based heavyweights doing most of the talking. Caterpillar and GE Aerospace have been key engines for the fund, rising over the longer term even if they’ve cooled a bit recently. RTX and Union Pacific are also pulling their weight, giving the ETF a solid backbone in aerospace and transportation. On the flip side, Boeing and Uber are dragging on returns, with ongoing challenges keeping their shares under pressure. Overall, the fund is concentrated in cyclical industrial names with only a light tech twist.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Caterpillar6.61%$601.68M$375.33B91.38%
76
Outperform
GE Aerospace5.21%$474.17M$373.60B33.56%
72
Outperform
GE Vernova Inc.4.22%$384.53M$263.75B51.90%
69
Neutral
RTX3.40%$310.11M$290.06B37.66%
74
Outperform
Eaton2.20%$200.76M$161.22B13.90%
75
Outperform
Boeing2.15%$196.23M$170.83B5.01%
54
Neutral
Deere2.06%$187.25M$159.98B18.51%
66
Neutral
Union Pacific1.85%$168.89M$173.55B31.15%
72
Outperform
Uber Technologies1.71%$156.16M$143.22B-19.02%
74
Outperform
Parker Hannifin1.65%$149.92M$123.13B38.73%
79
Outperform

VIS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
346.98
Positive
100DMA
337.29
Positive
200DMA
323.49
Positive
Market Momentum
MACD
0.55
Negative
RSI
60.69
Neutral
STOCH
74.78
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VIS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 347.43, equal to the 50-day MA of 346.98, and equal to the 200-day MA of 323.49, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 74.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIS.

VIS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$8.19B0.09%
71
Outperform
$8.26B0.58%
67
Neutral
$5.94B0.35%
67
Neutral
$2.29B0.08%
70
Outperform
$1.95B0.38%
71
Outperform
$1.09B0.40%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VIS
Vanguard Industrials ETF
358.35
72.83
25.51%
PPA
Invesco Aerospace & Defense ETF
XAR
SPDR S&P Aerospace & Defense ETF
FIDU
Fidelity MSCI Industrial Index ETF
IYJ
iShares U.S. Industrials ETF
RSPN
Invesco S&P 500 Equal Weight Industrials 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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