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XLI - ETF AI Analysis

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XLI

Industrial Select Sector SPDR Fund (XLI)

Rating:71Outperform
Price Target:
XLI, the Industrial Select Sector SPDR Fund, has a solid overall rating driven mainly by strong, well-positioned industrial leaders like Caterpillar, Vertiv, Eaton, and RTX, which show healthy financial performance, positive earnings calls, and strategic growth backlogs. These strengths are partly offset by weaker names such as Boeing, where financial challenges, high leverage, and program delays weigh on the fund, and by broader risks like pockets of overvaluation, leverage, and sector-specific issues (such as wind segment and regional challenges) across several holdings.
Positive Factors
Strong Overall Year-To-Date Performance
The ETF has delivered strong gains so far this year, suggesting its industrial focus has been working well for investors.
Leading Industrial Holdings Showing Solid Momentum
Several of the largest positions, including Caterpillar, GE Vernova, Union Pacific, Eaton, Deere, and Parker Hannifin, have shown strong or steady performance, helping support the fund’s returns.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of the returns generated by the underlying stocks.
Negative Factors
High Sector Concentration in Industrials
With most of its assets in the industrial sector, the ETF is heavily exposed to swings in that part of the economy and less protected if industrials weaken.
Underperforming Key Holdings
Some notable positions like Boeing and Uber have shown weak performance this year, which can drag on the fund’s overall results.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little diversification across different countries or regions.

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

XLI Summary

The Industrial Select Sector SPDR Fund (XLI) is an ETF that follows the S&P Industrial Select Sector Index, focusing on major U.S. industrial companies. It owns well-known names like Caterpillar, Union Pacific, and Boeing, which work in areas such as transportation, construction, and manufacturing. Investors might choose XLI to get broad exposure to the industrial part of the economy in a single, low-cost investment, which can help diversify a stock portfolio. A key risk is that it is heavily tied to the industrial sector, so its value can rise or fall sharply with economic cycles and demand for industrial activity.
How much will it cost me?The Industrial Select Sector SPDR Fund (XLI) has an expense ratio of 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, keeping costs down.
What would affect this ETF?The XLI ETF, focused on the U.S. industrial sector, could benefit from increased infrastructure spending, advancements in manufacturing technology, and growth in aerospace and transportation industries, as these align with its top holdings like Boeing and Caterpillar. However, it may face challenges from rising interest rates, which could increase borrowing costs for industrial companies, and economic slowdowns that reduce demand for construction and transportation services.

XLI Top 10 Holdings

XLI is leaning heavily into classic U.S. industrial muscle, with Caterpillar, GE Aerospace, and GE Vernova doing much of the heavy lifting as their shares have been steadily rising on strong earnings and upbeat outlooks. Eaton and Deere add more momentum, riding solid demand and innovation themes. On the flip side, RTX has been more mixed and Uber is clearly lagging, acting as a small speed bump in an otherwise sturdy portfolio. Overall, the fund is tightly focused on U.S. industrials, with only a light tech flavor on the side.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Caterpillar7.37%$2.40B$409.65B108.26%
76
Outperform
GE Aerospace6.41%$2.09B$354.01B30.22%
72
Outperform
GE Vernova Inc.4.77%$1.55B$264.70B65.26%
69
Neutral
RTX4.73%$1.54B$262.44B34.75%
74
Outperform
Union Pacific3.13%$1.02B$173.70B38.00%
72
Outperform
Boeing2.96%$965.22M$164.48B-9.53%
54
Neutral
Eaton2.85%$927.23M$158.00B7.85%
75
Outperform
Deere2.75%$895.31M$163.94B18.53%
66
Neutral
Uber Technologies2.58%$840.16M$143.16B-24.17%
74
Outperform
Parker Hannifin2.20%$718.33M$122.40B35.07%
79
Outperform

XLI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
177.21
Positive
100DMA
172.99
Positive
200DMA
165.71
Positive
Market Momentum
MACD
0.48
Positive
RSI
56.18
Neutral
STOCH
42.23
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 181.50, equal to the 50-day MA of 177.21, and equal to the 200-day MA of 165.71, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 42.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLI.

XLI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$32.61B0.08%
71
Outperform
$142.14B0.09%
74
Outperform
$118.06B0.08%
75
Outperform
$55.94B0.08%
72
Outperform
$13.66B0.38%
70
Neutral
$10.64B0.69%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XLI
Industrial Select Sector SPDR Fund
181.94
28.92
18.90%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
ITA
iShares U.S. Aerospace & Defense ETF
AIRR
First Trust RBA American Industrial Renaissance 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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