XLI

06 May: XLI Weekly

XLI: U.S. industrials sector offers access to transportation firms, commercial and professional services, and manufacturers of capital goods. 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 for a sector rotation strategy. The primary appeal of XLI lies in the impressive liquidity; used widely as a trading vehicle by active investors, XLI will generally feature very narrow bid-ask spreads. The depth of the XLI portfolio, however, leaves something to be desired. This ETF has far fewer holdings than options such as VIS, FIL, and IYJ, and also maintains a big weighting in GE.

14 Mar: JETS

JETS is the diversified Airlines Sector ETF. As a subset of the Transports sector, this ETF tracks the XAL almost perfectly but can actually be traded on both the shares & options side (XAL cannot be trades its purely an index in the academic sense purely from a nominal basis.) If you want to play the airlines but don’t know enough about the specifics of each balance sheet, don’t worry this is the perfect diversified instrument for you to play.