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Should You Invest in the First Trust RBA American Industrial Renaissance ETF (AIRR)?
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Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) is a passively managed exchange traded fund launched on 03/10/2014.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $296.23 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. AIRR seeks to match the performance of the Richard Bernstein Advisors American Industrial Renaissance Index before fees and expenses.
The Richard Bernstein Advisors American Industrial Renaissance Index is measures the performance of small and mid cap US companies in the industrial and community banking sectors.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.70%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0.18%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 92.90% of the portfolio.
Looking at individual holdings, Encore Wire Corporation (WIRE - Free Report) accounts for about 3.92% of total assets, followed by Comfort Systems Usa, Inc. (FIX - Free Report) and Proto Labs, Inc. (PRLB - Free Report) .
The top 10 holdings account for about 36.29% of total assets under management.
Performance and Risk
The ETF has added roughly 5.87% so far this year and it's up approximately 23.84% in the last one year (as of 05/10/2023). In that past 52-week period, it has traded between $36.26 and $51.63.
The ETF has a beta of 1.25 and standard deviation of 27.63% for the trailing three-year period, making it a high risk choice in the space. With about 54 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust RBA American Industrial Renaissance ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, AIRR is an outstanding 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.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $3.76 billion in assets, Industrial Select Sector SPDR ETF has $13.22 billion. VIS has an expense ratio of 0.10% 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 First Trust RBA American Industrial Renaissance ETF (AIRR)?
Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) is a passively managed exchange traded fund launched on 03/10/2014.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $296.23 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. AIRR seeks to match the performance of the Richard Bernstein Advisors American Industrial Renaissance Index before fees and expenses.
The Richard Bernstein Advisors American Industrial Renaissance Index is measures the performance of small and mid cap US companies in the industrial and community banking sectors.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.70%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0.18%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 92.90% of the portfolio.
Looking at individual holdings, Encore Wire Corporation (WIRE - Free Report) accounts for about 3.92% of total assets, followed by Comfort Systems Usa, Inc. (FIX - Free Report) and Proto Labs, Inc. (PRLB - Free Report) .
The top 10 holdings account for about 36.29% of total assets under management.
Performance and Risk
The ETF has added roughly 5.87% so far this year and it's up approximately 23.84% in the last one year (as of 05/10/2023). In that past 52-week period, it has traded between $36.26 and $51.63.
The ETF has a beta of 1.25 and standard deviation of 27.63% for the trailing three-year period, making it a high risk choice in the space. With about 54 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust RBA American Industrial Renaissance ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, AIRR is an outstanding 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.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $3.76 billion in assets, Industrial Select Sector SPDR ETF has $13.22 billion. VIS has an expense ratio of 0.10% 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.