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Should You Invest in the Vanguard Industrials ETF (VIS)?
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Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the Vanguard Industrials ETF (VIS - Free Report) is a passively managed exchange traded fund launched on 09/23/2004.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $4.56 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. VIS seeks to match the performance of the MSCI US Investable Market Industrials 25/50 Index before fees and expenses.
The MSCI US Investable Market Index (IMI)/Industrials 25/50 is made up of stocks of large, mid-size, and small U.S. companies within the industrials sector.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.21%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 100% of the portfolio.
Looking at individual holdings, Honeywell International Inc. (HON - Free Report) accounts for about 3.71% of total assets, followed by United Parcel Service Inc. (UPS - Free Report) and Raytheon Technologies Corp. (RTX - Free Report) .
Performance and Risk
The ETF has lost about -7.61% and is up about 7.81% so far this year and in the past one year (as of 02/21/2022), respectively. VIS has traded between $176.27 and $207.50 during this last 52-week period.
The ETF has a beta of 1.20 and standard deviation of 26.21% for the trailing three-year period, making it a medium risk choice in the space. With about 356 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Industrials ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VIS is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust IndustrialsProducer Durables AlphaDEX ETF (FXR - Free Report) tracks StrataQuant Industrials Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. First Trust IndustrialsProducer Durables AlphaDEX ETF has $1.74 billion in assets, Industrial Select Sector SPDR ETF has $16.18 billion. FXR has an expense ratio of 0.61% and XLI charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Vanguard Industrials ETF (VIS)?
Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the Vanguard Industrials ETF (VIS - Free Report) is a passively managed exchange traded fund launched on 09/23/2004.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $4.56 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. VIS seeks to match the performance of the MSCI US Investable Market Industrials 25/50 Index before fees and expenses.
The MSCI US Investable Market Index (IMI)/Industrials 25/50 is made up of stocks of large, mid-size, and small U.S. companies within the industrials sector.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.21%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 100% of the portfolio.
Looking at individual holdings, Honeywell International Inc. (HON - Free Report) accounts for about 3.71% of total assets, followed by United Parcel Service Inc. (UPS - Free Report) and Raytheon Technologies Corp. (RTX - Free Report) .
Performance and Risk
The ETF has lost about -7.61% and is up about 7.81% so far this year and in the past one year (as of 02/21/2022), respectively. VIS has traded between $176.27 and $207.50 during this last 52-week period.
The ETF has a beta of 1.20 and standard deviation of 26.21% for the trailing three-year period, making it a medium risk choice in the space. With about 356 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Industrials ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VIS is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust IndustrialsProducer Durables AlphaDEX ETF (FXR - Free Report) tracks StrataQuant Industrials Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. First Trust IndustrialsProducer Durables AlphaDEX ETF has $1.74 billion in assets, Industrial Select Sector SPDR ETF has $16.18 billion. FXR has an expense ratio of 0.61% and XLI charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.