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Should You Invest in the Vanguard Industrials ETF (VIS)?
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If you're interested in broad exposure to the Industrials - Broad segment of the equity market, look no further than the Vanguard Industrials ETF (VIS - Free Report) , a passively managed exchange traded fund launched on 09/23/2004.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $3.43 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.90% of the portfolio.
Looking at individual holdings, Union Pacific Corp. (UNP - Free Report) accounts for about 3.91% 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 -12.58% and is down about -12.79% so far this year and in the past one year (as of 11/03/2022), respectively. VIS has traded between $157.54 and $207.50 during this last 52-week period.
The ETF has a beta of 1.15 and standard deviation of 27.70% for the trailing three-year period, making it a medium risk choice in the space. With about 366 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Industrials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VIS is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $1.43 billion in assets, Industrial Select Sector SPDR ETF has $12.59 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)?
If you're interested in broad exposure to the Industrials - Broad segment of the equity market, look no further than the Vanguard Industrials ETF (VIS - Free Report) , a passively managed exchange traded fund launched on 09/23/2004.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $3.43 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.90% of the portfolio.
Looking at individual holdings, Union Pacific Corp. (UNP - Free Report) accounts for about 3.91% 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 -12.58% and is down about -12.79% so far this year and in the past one year (as of 11/03/2022), respectively. VIS has traded between $157.54 and $207.50 during this last 52-week period.
The ETF has a beta of 1.15 and standard deviation of 27.70% for the trailing three-year period, making it a medium risk choice in the space. With about 366 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Industrials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VIS is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $1.43 billion in assets, Industrial Select Sector SPDR ETF has $12.59 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.