IYJ iShares US Industrials ETF

With the economy seeing broad strength, many cyclical sectors are roaring higher. In particular, the manufacturing segment is experiencing plenty of success lately, and some more portfolio exposure to this segment could be warranted.

This is especially true given the solid data that investors have seen in this space over the past few months. For example, the ISM Manufacturing Index hit 57.3, its highest level since April 2011, while Market’s U.S. manufacturing PMI is now at a 10 month high, suggesting that the space is running on all cylinders (see all the Industrial ETFs here).

How to Play

There are a few ways for investors to tap into this trend in broad form by using industrial ETFs. These funds give investors exposure to a variety of companies across the space and thus might be lower risk ways to play the solid trend in the space.

In particular, the iShares US Industrials ETF (IYJ) and the PowerShares Dynamic Industrials ETF (PRN) could be interesting selections. Both have surged more than 30% in the past one year, but still have Zacks ETF Ranks #2 (Buy), so they could continue to see strength in the months ahead as well (see all the Top Ranked ETFs here).

More Information

For more on PRN and IYJ, as well as the manufacturing renaissance in the U.S., make sure to watch our short video on the subject below:



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ISHARS-US INDU (IYJ): ETF Research Reports
 
PWRSH-DYN INDU (PRN): ETF Research Reports
 
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