Best Industrials ETFs Right Now

Invest in the best industrials ETFs today with Interactive Brokers as your trusted online brokerage.

As an investor, you build your financial portfolio to meet your goals and needs. You can trade stocks from over 70 industrial sectors on the stock exchange. Investing in industrials exchange-traded funds (ETFs) can expose you to several companies from specific sectors that meet your interest in 1 trade.  That's why you need to know the best industrials ETFs.

Industrials invest in stocks of companies involved in industries such as aerospace, transport, manufacturing, oil and gas, health care, real estate, technology and water. They let you invest in a bundle of penny stock, small-cap, mid-cap and large-cap companies without having to manage individual stocks. 

Top 3 Industrials ETFs by AUM

No matter what type of investor you are, industrials can help you find a foothold in various industrial sectors at low costs. These ETFs are a quick and easy way to diversify your portfolio without burning a hole in your pocket. 

You should evaluate the expense ratios, daily performances, historical return records, liquidity and AUM of ETFs before you invest. Take a look at these industrials to start investing. 

1. First Trust ISE Water Index Fund (NASDAQ: FIW)

Launched in 2007, First Trust ISE Water Index Fund has an expense ratio of 0.53%. It mirrors the ISE Water Index with holdings in over 35 companies that generate revenue from wastewater treatments and clean water distribution.

First Trust ISE Water Index Fund has an annual dividend rate of $0.64 per share. It has a total AUM of $1.89 billion with a daily trade volume of 50,046 shares. First Trust ISE Water Index Fund has a 3-year return rate of 18.89% and a 5-year return rate of 92.43%. 

Historical performance of First Trust Water ETF (ARCA:FIW) over the last 5 years. Source – NASDAQ

Invesco Aerospace & Defense ETF has been on the market since 2005. It tracks the SPADE Defense Index and offers exposure to slow but stable growing companies in the defense sector. 

Invesco Aerospace & Defense ETF has a low expense ratio of 0.58% with a total AUM of $4.36 billion. It has a 3-year return rate of 16.59% and a 5-year return rate of 11.96%. This ETF trades more than 295,000 shares per day with a daily change rate of 5.72%. Invesco Aerospace & Defense ETF has an annual dividend rate of $0.65 per share.

 Historical performance of Invesco Aerospace & Defense ETF over the last 5 years. Source – NASDAQ

SPDR S&P Aerospace & Defense ETF corresponds to the S&P Aerospace & Defense Select Industry Index. This fund primarily holds assets in large-cap stocks from the aerospace and defense sector. 

SPDR S&P Aerospace & Defense ETF has a total AUM of $2.43 billion with an expense ratio of 0.35%. It has high liquidity with more than 100,000 shares traded every day. This ETF has a 3-year return rate of 9.40% and a 5-year return rate of 8.54%. SPDR S&P Aerospace & Defense ETF has an annual dividend rate of $0.82 per share. 

Historical performance of SPDR S&P Aerospace & Defense ETF over the last 5 years. Source - NASDAQ

Best Online Brokers for Industrials

An online broker can help you invest in the top ETFs. Most online brokers let you trade commission-free. Benzinga has curated the best online brokers to begin your investment journey. 

Best For

• Futures Trading

get startedsecurely through TradeStation's website

1. TradeStation

TradeStation is an online broker that lets you trade stocks, ETFs, futures, options and cryptocurrencies with reliable execution. You can open a TS Select account with a $2,000 minimum deposit or a TS GO account with a $0 minimum deposit.

TradeStation equips you with trading tools to help you compete in numerous markets with ease. You can browse through 2,000 ETFs across industrial sectors to invest in. This platform lets you trade on desktop, web and mobile. 

Best For

• Mobile Investing

Open an account securely through Firstrade's website

2. Firstrade

Firstrade is an online broker that lets you unlock investing opportunities with professional trading tools. You can open an account on Firstrade without a minimum deposit. 

You can customize your Firstrade account to manage your investments and trade from your desktop, iPad or smartphone. This platform gives you access to more than 100 ETF providers with in-depth coverage from Morningstar.  

Best For

• Fund Investing

get startedsecurely through Charles Schwab's website

3. Charles Schwab

Charles Schwab is an online broker that lets you trade stocks, ETFs, options and mutual funds commission-free. You can open an account with a $0 minimum deposit. 

With Charles Schwab, you can choose and research stocks, place trades and manage your portfolio conveniently. It features an ETF Comparison Tool to help you find investments that match your financial goals based on performance, cost and 3rd-party analysts.   

Why Invest in Industrials ETFs?

Here are the top 3 reasons you should consider investing in industrials ETFs. 

1. Industrials ETFs are on a Strong Market Rebound

The economy has taken a significant hit. The COVID-19 outbreak has paralyzed the operations of many companies by enforcing strict work-from-home policies. But industrials are on a quick road to recovery. 

As of the end of March 2020, Dow Jones Industrial Average Index rose by 11.4%, its highest 1-day gain recorded since 1933. In the same month, the Industrial Select Sector Index rose by 12.7% and the MSCI U.S. Investable Market Industrials 25/50 Index rose by 11.9%. 

2. Aerospace and Defense ETFs are Starting to Soar

The rising tensions between the Middle East and the U.S. have increased the valuation of aerospace and defense ETFs. Earlier this year, President Trump sanctioned a $738 billion National Defense Authorization Act that will directly impact the performance of aerospace and defense ETFs. 

Moreover, major underlying companies of S&P Aerospace & Defense Select Industry Sector Index and Dow Jones U.S. Select Aerospace & Defense Index such as Boeing (NASDAQ: BA), Lockheed Martin (NASDAQ: LMT) and Raytheon Technologies (NASDAQ: RTX) are surging in the market recently. These are positive indications that ETFs from this industrial sector can be good investments.      

3. Water ETFs are Gaining Major Traction

Fresh water is a precious commodity for people everywhere. The scarcity of water is an excellent opportunity for you to invest in industrials ETFs with underlying companies that collect, purify and distribute clean water.

Water ETFs are a growing market with optimistic return rates and a consolidated assets under management (AUM) of $1.89 billion. You can purchase them at low expense ratios, usually below 1%. Water is a basic human right and you can do your part in ensuring people have access to drinking water by investing in water ETFs. 

Industrials ETFs Biggest Gainers and Losers

Take a look at some of the industrials ETFs in the stock market with the most and least profits. 

Premarket Industrials ETFs

Here’s a glimpse at industrials ETFs with the biggest price movements before the trading session opens on major stock exchanges.  

Aftermarket Industrials ETFs

A glance at some of the industrials ETFs with the biggest price movements after the trading session is closed on major stock exchanges. 

Invest in Industrial Growth 

Industrials can give you instant exposure to broad-based markets from various business verticals. Research the sectors that align with your trading strategy and invest in industrials to get the best returns.

Frequently Asked Questions