XLI Industrials

The sector remains a diverse exposure that has remained in the middle of the road as investors have rotated between Growth, Cyclical and Low Vol. exposures at different points in 2025.

We think Fed Easing against a backdrop of slowing economic growth is more likely to benefit Growth Stocks than Value Stocks which keeps us negative on the Industrial sector going into December.

We’ve gone long the Industrials sector despite near-term weakness. It is less weak than many sectors despite lackluster performance.

Onshoring and AI implementation remain tailwinds offsetting weakness in Transports and Industrial Services segments.