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Is First Trust RBA American Industrial Renaissance ETF (AIRR) a Strong ETF Right Now?
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Designed to provide broad exposure to the Industrials ETFs category of the market, the First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) is a smart beta exchange traded fund launched on 03/10/2014.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $9.1 billion, this makes it one of the largest ETFs in the Industrials ETFs. AIRR is managed by First Trust Advisors. This particular fund 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.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the more expensive products in the space, this ETF has annual operating expenses of 0.69%.
AIRR's 12-month trailing dividend yield is 0.09%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 92.7% of the portfolio, the fund has heaviest allocation to the Industrials sector.
Taking into account individual holdings, Ies Holdings, Inc. (IESC) accounts for about 3.74% of the fund's total assets, followed by Kratos Defense & Security Solutions, Inc. (KTOS) and Owens Corning (OC).
The top 10 holdings account for about 30.41% of total assets under management.
Performance and Risk
The ETF has added about 6.89% so far this year and is up roughly 11.87% in the last one year (as of 09/28/2026). In the past 52-week period, it has traded between $91.04 and $133.25
AIRR has a beta of 1.27 and standard deviation of 26.11% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 58 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust RBA American Industrial Renaissance ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Industrials Index Fund ETF Shares (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials Index Fund ETF Shares has $7.79 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.41 billion. VIS has an expense ratio of 0.09% and XLI changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs
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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Is First Trust RBA American Industrial Renaissance ETF (AIRR) a Strong ETF Right Now?
Designed to provide broad exposure to the Industrials ETFs category of the market, the First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) is a smart beta exchange traded fund launched on 03/10/2014.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $9.1 billion, this makes it one of the largest ETFs in the Industrials ETFs. AIRR is managed by First Trust Advisors. This particular fund 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.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the more expensive products in the space, this ETF has annual operating expenses of 0.69%.
AIRR's 12-month trailing dividend yield is 0.09%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 92.7% of the portfolio, the fund has heaviest allocation to the Industrials sector.
Taking into account individual holdings, Ies Holdings, Inc. (IESC) accounts for about 3.74% of the fund's total assets, followed by Kratos Defense & Security Solutions, Inc. (KTOS) and Owens Corning (OC).
The top 10 holdings account for about 30.41% of total assets under management.
Performance and Risk
The ETF has added about 6.89% so far this year and is up roughly 11.87% in the last one year (as of 09/28/2026). In the past 52-week period, it has traded between $91.04 and $133.25
AIRR has a beta of 1.27 and standard deviation of 26.11% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 58 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust RBA American Industrial Renaissance ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Industrials Index Fund ETF Shares (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials Index Fund ETF Shares has $7.79 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.41 billion. VIS has an expense ratio of 0.09% and XLI changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs
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.