© 2020 Arizent. All rights reserved.
FP2717_0.png
Despite the common notion that industrials are fading in importance in the modern age of digital disruption, old school investments have outperformed the broader markets in recent years.
Indeed, as measured by either of the two biggest ETFs in the sector, Vanguard Industrials or Industrial Select SPDR, these investments have posted higher gains than the S&P 500 in the past one, three and five years. For those timeframes, the benchmark index posted annualized returns of 23%, 8.9% and 11.3%, respectively.

Many of the companies in the industrial sector are poised to have a strong 2017 as well, according to research from Fidelity. Two major factors likely to affect future performance are increased infrastructure spending in the U.S. and China, and increased U.S. defense spending, according to Fidelity.

President Trump’s plans to use tax incentives to spur $1 trillion in infrastructure spending over 10 years would help the transportation and construction industries. And his pledge to boost Pentagon spending would benefit aerospace and defense contractors. Overall, the industrial sector covers three major types of businesses: manufacturing and distributing capital goods, providing commercial services and supplies, and providing transportation services. Capital goods is the largest group – almost 75% – and, within that category, aerospace and defense is the biggest industry.

Fidelity accounted for seven of the top 20 industrial funds over the past 12 months. State Street and BlackRock also fared well. Click through to see the top 20 funds. All data from Morningstar.
FP2717_20.png
20. PowerShares DWA Industrials Momentum ETF (PRN)
1-Yr. Return: 26.47%
3-Yr. Annualized Return: 2.01%
Expense Ratio: 0.60%
Total Assets (millions): $144
FP2717_19.png
19. Fidelity Select Industrials (FCYIX)
1-Yr. Return: 29.22%
3-Yr. Annualized Return: 6.22%
Expense Ratio: 0.77%
Total Assets (millions): $952
FP2717_18.png
18. Fidelity Advisor Industrials I (FCLIX)
1-Yr. Return: 29.50%
3-Yr. Annualized Return: 6.43%
Expense Ratio: 0.80%
Total Assets (millions): $787
FP2717_17.png
17. iShares US Industrials (IYJ)
1-Yr. Return: 30.52%
3-Yr. Annualized Return: 7.56%
Expense Ratio: 0.44%
Total Assets (millions): $1,171
FP2717_16.png
16. Industrial Select Sector SPDR ETF (XLI)
1-Yr. Return: 31.11%
3-Yr. Annualized Return: 8.24%
Expense Ratio: 0.14%
Total Assets (millions): $10,347
FP2717_15.png
15. Fidelity Select Defense & Aero Port (FSDAX)
1-Yr. Return: 31.29%
3-Yr. Annualized Return: 7.92%
Expense Ratio: 0.80%
Total Assets (millions): $1,459
FP2717_14.png
14. PowerShares Aerospace & Defense ETF (PPA)
1-Yr. Return: 31.38%
3-Yr. Annualized Return: 11.89%
Expense Ratio: 0.64%
Total Assets (millions): $465
FP2717_13.png
13. Fidelity Select Air Transportation Port (FSAIX)
1-Yr. Return: 31.62%
3-Yr. Annualized Return: 12%
Expense Ratio: 0.83%
Total Assets (millions): $381
FP2717_12.png
12. Vanguard Industrials ETF (VIS)
1-Yr. Return: 32.60%
3-Yr. Annualized Return: 7.99%
Expense Ratio: 0.10%
Total Assets (millions): $2,766
FP2717_11.png
11. Fidelity MSCI Industrials ETF (FIDU)
1-Yr. Return: 32.67%
3-Yr. Annualized Return: 7.39%
Expense Ratio: 0.08%
Total Assets (millions): $301
FP2717_10.png
10. iShares US Aerospace & Defense (ITA)
1-Yr. Return: 34.89%
3-Yr. Annualized Return: 11.23%
Expense Ratio: 0.44%
Total Assets (millions): $2,138
FP2717_9.png
9. Guggenheim S&P 500 Eq Wt Indls ETF (RGI)
1-Yr. Return: 35.18%
3-Yr. Annualized Return: 8.08%
Expense Ratio: 0.40%
Total Assets (millions): $189
FP2717_8.png
8. Fidelity Select Envir and Alt Engy Port (FSLEX)
1-Yr. Return: 35.60%
3-Yr. Annualized Return: 5.47%
Expense Ratio: 0.95%
Total Assets (millions): $129
FP2717_7.png
7. PowerShares Dynamic Building & Const ETF (PKB)
1-Yr. Return: 36.60%
3-Yr. Annualized Return: 7.82%
Expense Ratio: 0.63%
Total Assets (millions): $274
FP2717_6.png
6. iShares Transportation Average (IYT)
1-Yr. Return: 37.13%
3-Yr. Annualized Return: 8.33%
Expense Ratio: 0.44%
Total Assets (millions): $1,131
FP2717_5.png
5. SPDR S&P Aerospace & Defense ETF (XAR)
1-Yr. Return: 38.20%
3-Yr. Annualized Return: 10.24%
Expense Ratio: 0.35%
Total Assets (millions): $424
FP2717_4.png
4. Fidelity Select Transportation (FSRFX)
1-Yr. Return: 38.27%
3-Yr. Annualized Return: 11.19%
Expense Ratio: 0.81%
Total Assets (millions): $650
FP2717_3.png
3. SPDR S&P Transportation ETF (XTN)
1-Yr. Return: 40.79%
3-Yr. Annualized Return: 10.66%
Expense Ratio: 0.35%
Total Assets (millions): $258
FP2717_2.png
2. First Trust Indtls/PrdcrDurbAlphaDEX ETF (FXR)
1-Yr. Return: 43.28%
3-Yr. Annualized Return: 5.86%
Expense Ratio: 0.66%
Total Assets (millions): $1,516
FP2717_1.png
1. First Trust RBA Amer Indl RenaisTM ETF (AIRR)
1-Yr. Return: 65.19%
3-Yr. Annualized Return: N/A
Expense Ratio: 0.70%
Total Assets (millions): $188