Twitter's down 32% this year, Facebook's off 20% in a month, and biotech nearly that much, but money is returning to the industrial sector. While the Nasdaq 100 posted its worst one-day drop since 2011 on Friday and last week fell for the 3rd week in 4, the Industrial Select SPDR (XLI) gained 1.6%.
In the year's first quarter, the XLI had lost 1.4%, putting it in 9th place among 10 S&P 500 groups.
"You’re seeing the beginning of investors shifting money ahead of a wave of spending,” says Drew Nordlicht of HighTower Advisors. “The expectation is, as the economy begins to kick into a higher gear, corporate America will utilize the amount of cash to spend on capital expenditures."
GE comprises more than 10% of the XLI, and UTX, Union Pacific, Boeing, and 3M round out the top 5, each with holdings in the 5% range.
The ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) will track an index of companies have key operations in the global infrastructure sector, with a preference for companies that focus on long term and stable cash flows.
Within the manufacturing sector there are only a few ETFs that offer pure exposure to the infrastructure sub-sector, but with an expense ratio of .45%, TOLZ undercuts them all.