Industrials Sector: Overview and Funds

The industrials sector is comprised of companies that provide commercial and industrial products and services. The industrials sector is similar to the materials sector, but there are two key differences. First, the products manufactured by companies in the industrials sector are not raw materials. For example, a company that produces farming tractors would be classified in industrials, but a mining company would be classified in materials. Second, the industrials sector includes companies that provide products and services, whereas companies in the materials sector mainly create products. The industrials sector is broken into three major industries: capital goods, commercial and professional services and transportation.

Capital Goods

Companies in the capital goods industry provide commercial and industrial products, such as defense equipment and industrial and agricultural machinery and engineering, commercial construction and trading services. Capital goods are any products or assets that are not sold to consumers, but are instead used to produce other goods. For example, a tractor that is used to fertilize crops is considered a capital good because it helps in the production of food products.


Aerospace & Defense

Aerospace & DefenseCompanies that make civil or military aerospace and defense equipment, such as planes. This includes defense electronics, such as radar, and space equipment.

Building Products

Building ProductsCompanies that make building and home improvement products. This excludes lumber/plywood and cement, which are classified in the materials sector.

Construction & Engineering

Construction & EngineeringCompanies that construct non-residential structures, such as commercial buildings. This includes civil engineering (bridges, etc.) and large contractors. Companies that construct residential buildings are part of the consumer discretionary sector.

Electrical Equipment

Electrical Components & EquipmentCompanies that make electrical cables and wires and other small electrical equipment.
Heavy Electrical EquipmentCompanies that make power generators and other heavy electrical equipment. This includes turbines and large electrical systems.

Industrial Conglomerates

Industrial ConglomeratesCompanies with activities in three or more industrial sectors, and no single activity makes up the majority of the revenue.


Construction Machinery & Heavy TrucksCompanies that produce heavy duty trucks, machinery and construction equipment. This includes commercial and industrial shipbuilding.
Agricultural & Farm MachineryCompanies that produce agricultural and farm machinery and related products. This includes tractors, grain dryers and machinery used for planting and fertilizing.
Industrial MachineryCompanies that produce industrial machinery, such as presses, compressors, elevators, escalators, insulators and machine tools.

Trading Companies & Distributors

Trading Companies & DistributorsCompanies that trade, wholesale or distribute industrial equipment, but do not make equipment.

Examples of companies in the capital goods industry include Boeing, Honeywell, 3M Company, Caterpillar, General Electric, Corning and Lockheed Martin.

Commercial and Professional Services

Companies in the commercial and professional services industry provide printing, office, security, facility, human resources, consulting and research services to other companies. This includes services like catering, armored vehicles, office cleaning and waste disposal. These types of companies can be considered "business to business" (or B2B) service providers.



Commercial Services & Supplies

Commercial PrintingCompanies that provide commercial printing services. This includes media printing, such as the printing of magazines or books.
Environmental & Facilities ServicesCompanies that provide environmental and facilities management services. This includes waste disposal and pollution control.
Office Services & SuppliesCompanies that provide office services or that produce office supplies and equipment and that are not classified elsewhere.
Diversified Support ServicesCompanies that provide support services for commercial and government use. This includes office cleaning, catering, transaction processing, uniform rental and building repair and maintenance.
Security & Alarm ServicesCompanies that provide security services for commercial and government use. This includes prisons, security systems, armored vehicles, and security guards. Security software and home security are excluded.

Professional Services

Human Resource & Employment ServicesCompanies that provide human capital services for commercial use. This includes employment agencies, temp agencies, payroll services and employee benefit administrators.
Research & Consulting ServicesCompanies that provide research and consulting services for commercial and government use. This includes management consulting, architecture, marketing and research. This excludes IT consulting, which is classified in information technology sector.

Companies that provide commercial and professional services include ADT, Waste Management Inc., Nielsen, Pitney-Bowes, Robert Half International and Verisk Analytics.


The transportation industry includes companies that provide both commercial and passenger transportation and mail, freight and carrier services. This also includes companies that may manage infrastructure, such as roads, bridges, tunnels or railroads.

Air Freight & LogisticsAir Freight & LogisticsCompanies that provide package and mail delivery services, including air freight, courier and logistic services.


AirlinesCompanies that provide passenger air transportation.


MarineCompanies that provide commercial and passenger water transportation. This excludes cruise ships, which are classified in the consumer discretionary sector.

Road & Rail

RailroadsCompanies that provide commercial and passenger rail transportation.
TruckingCompanies that provide commercial and passenger vehicle transportation, including trucking companies, rental car companies and taxi services.

Transportation Infrastructure

Airport ServicesCompanies that manage or operate airports.
Highways & Rail TracksCompanies that own or manage roads, tunnels and railways.
Marine Ports & ServicesCompanies that own or manage marine ports.

Examples of transportation companies are Delta Air Lines, FedEx, J.B. Hunt Transportation, American Airlines, Union Pacific and Kansas City Southern.

Industrials Sector ETFs and Mutual Funds

Below, we list 54 mutual funds, index funds and ETFs that cover the industrials sector. Many of these funds specialize in a sub-industry in the sector: aerospace and defense, capital goods, transportation, shipping, drones and more. Some of these funds may track also companies and industries outside of the industrials sector. The expense ratios for these funds start at 0.10% and go up to 2.35%.

NameSymbolExpense Ratio

Vanguard Industrials ETF


Vanguard Industrials Index Admiral Shares


Fidelity MSCI Industrials ETF


Industrial Select Sector SPDR


PowerSHares S&P SmallCap Industrials ETF


SPDR S&P Transportation ETF


SPDR S&P Aerospace & Defense ETF


Guggenheim S&P Equal Weight Industrials ETF


SPDR S&P International Industrial Sector ETF


iShares U.S. Aerospace & Defense ETF


iShares Transportation Average


iShares U.S. Industrials ETF


iShares Global Industrials ETF


WisdomTree Japan Hedged Capital Goods ETF


Market Vectors Environmental Services ETF


First Trust ISE Water ETF


U.S. Global Jets ETF


PowerShares DWA Industrials Momentum ETF


PowerShares Water Resources ETF


First Trust Industrials/Producer Durables AlphaDEX ETF


Guggenheim S&P Global Water ETF


Guggenheim Shipping ETF


Global X China Industrials ETF


PowerShares Aerospace & Defense ETF


First Trust RBA American Industrial Renaissance ETF


PureFunds Drone Economy Strategy ETF


PowerShares Global Water ETF


Fidelity® Select Industrial Equipment Portfolio


Fidelity® Select Industrials


Fidelity Advisor® Industrials Fund Class I


Fidelity® Select Defense & Aerospace Portfolio


Fidelity® Select Transportation


Fidelity® Select Air Transportation Portfolio


Fidelity® Select Environment and Alternative Energy Portfolio


ProShares Ultra Industrials


ARK Industrial Innovation ETF


ProShares UltraShort Industrials


Putnam Global Industrial Fund Class Y


T. Rowe Price Global Industrials


Fidelity Advisor® Industrials Fund Class A


Putnam Global Industrial Fund Class A


Fidelity Advisor® Industrials Fund Class T


Rydex Transportation Investor Class


ICON Industrials Fund Class S


Putnam Global Industrial Fund Class R


Rydex Transportation Fund Class A


ICON Industrials Fund Class A


Putnam Global Industrial Fund Class M


Fidelity Advisor® Industrials Fund Class C


Fidelity Advisor® Industrials Fund Class B


Rydex Transportation Fund Class H


Putnam Global Industrial Fund Class C


Putnam Global Industrial Fund Class B


Rydex Transportation Fund Class C


Before you buy a fund, always research the fund. You should consider factors such as the investment strategy, underlying components, historical returns and fees and loads of the fund. You should also account for your current investment portfolio allocation and strategy.

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