XLI Stock Recent News

ETFs are a great investment vehicle for investors looking for decent returns over time and increased stability compared to just owning individual companies. The funds also allow increased exposure to some of the largest companies in the market at a reduced rate.

XLI tracks an Index of 75 S&P 500 Industrial stocks. Launched in December 1998, XLI has outperformed the broader market and is up again over the last three years. Investors today have an opportunity to buy a well-diversified sector ETF that trades at a 4-point discount to SPY and offers stronger earnings growth potential. Nearly all constituents have reported Q2 earnings, and the results were positive. Shares of Caterpillar, XLI's top holding, recently hit an all-time high.

Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the Industrial Select Sector SPDR ETF (XLI) is a passively managed exchange traded fund launched on 12/16/1998.

As the second-quarter earnings season commences, Wall Street strategists, including Morgan Stanley's Michael Wilson, caution investors against expecting a boost to the U.S. stock market.

Apart from the ongoing AI boom, a strong job market, a resilient economy, solid cash reserves, a new bull market, a rebound in the home building sector and massive infrastructure spending should drive the broader market in the second half of 2023 despite rising rate worries.

The U.S. manufacturing sector has been facing a downturn, according to recent data released by the Institute for Supply Management (ISM) and S&P Global. Both reports showed that manufacturing activity in June contracted at a faster pace than in May.

For investors seeking momentum, Industrial Select Sector SPDR Fund XLI is probably on radar. The fund just hit a 52-week high and is up 29% from its 52-week low price of $82.75/share.

The Fed took the market at least a little bit by surprise when it decided to project two more rate hikes earlier this month. It comes as readings on consumer prices continue to slow, and as the Fed itself admits that the impact from past increases have yet to be felt on the broader economy.

The S&P 500's current rally is unsustainable as it is led by a few megacap tech stocks, but proponents of a new bull market argue that the rest of the market will catch up. The Industrial sector has seen an 8% rise in the last month, which bulls interpret as evidence of a soft landing and a broadening of the rally. However, the high short interest in the Industrial sector suggests that the rise could be due to short covering, making the rally more likely to be a bear market rally.

The Industrial Select Sector SPDR Fund NYSE: XLI recently broke above two critical resistance levels, indicating a shift in the industrial sector. The breakout has gone relatively unnoticed, as the attention remains on other key sectors and industries.