The fund has reeled in north of $1 billion just this month alone but year-to-date, has attracted a net of only about $450 million (before the October inflows the fund was actually in the red in terms of net YTD flows). XLI is by far the largest Industrials Equity focused ETF in the U.S. marketplace, as it is almost three times as large as the next biggest competitor (which is more of an Aerospace/Defense focused name rather than a broad-based Industrials Equity fund), ITA (iShares U.S. Aerospace & Defense, Expense Ratio 0.44%, $4.5 billion in AUM).
After trading at a new 52-week high in early hours today, XLI has actually turned negative on the day, but we note that it has spent all of October significantly higher than where it was through September. We believe that the recent flows in XLI are corporate earnings related, as the top holdings in the fund are slated to release their quarterly results as follows: 1) GE (6.68%, 10/20 AM), 2) BA (6.38%, 10/25 AM), 3) MMM (5.62%, 10/24 AM), 4) HON (4.89%, 10/20 AM), 5) UNP (4.22%, 10/26 AM).
The Industrial Select Sector SPDR Fund (XLI) was trading at $71.82 per share on Monday afternoon, down $0.12 (-0.17%). Year-to-date, XLI has gained 16.50%, versus a 14.85% rise in the benchmark S&P 500 index during the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.