Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the iShares U.S. Industrials ETF (IYJ Quick QuoteIYJ - Free Report) , a passively managed exchange traded fund launched on June 12, 2000.

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 9, placing it in bottom 44%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $1.79 billion, making it one of the larger ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. IYJ seeks to match the performance of the Dow Jones U.S. Industrials Index before fees and expenses.

The Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index measures the performance of the industrial sector of the U.S. equity market. It includes: construction & materials, aerospace & defense, general industrials, electronic & electrical equipment, industrial engineering, industrial transportation & support services. The Index is capitalization-weighted.

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 0.37%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.68%.

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 68.7% of the portfolio. Financials and Materials round out the top three.

Looking at individual holdings, Visa Class A (V) accounts for about 7.7% of total assets, followed by Mastercard Class A (MA) and Caterpillar Inc (CAT).

The top 10 holdings account for about 36.74% of total assets under management.

Performance and Risk

So far this year, IYJ has added about 6.16%, and was up about 6.43% in the last one year (as of 10/27/2026). During this past 52-week period, the fund has traded between $138.91 and $169.86.

The ETF has a beta of 1.01 and standard deviation of 16.13% for the trailing three-year period, making it a medium risk choice in the space. With about 218 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares U.S. Industrials 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, IYJ 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 RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $8.33 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.77 billion. AIRR has an expense ratio of 0.69%, and XLI charges 0.08%.

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.