MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Suggestions for adding more industrial to portfolio

slick
edited January 2014 in Fund Discussions
I currently am a bit underweight in industrials since I sold CAT after taking a moderate loss; I did not see it coming back any time soon. I do have MMM, UTX and UNP and funds with about 8% industrials according to M*. I plan on selling one of my consumer staple stocks which has not done much over the last year, and even though it has a nice dividend, I am a bit overweight this sector. I was thinking of adding either an etf or sector fund. I looked at VIS and FCLIX, does anyone have any other suggestions? The pickings look a bit light.

Comments

  • TedTed
    edited January 2014
    Dear Slick: Look at XLI, IYJ, ITA, PPA, and FCYIX
    Regards,
    Ted
  • slick
    Reply to @Ted:
    Thanks Ted, FCYIX I believe is same as FCLIX, one is advisor one is institutional. I have access to both. I did compare IYJ to VIS, portfolio so similar and Vanguard's was cheaper.

    I did look at the aerospace and defense ones, I think I want it more diversified than just those two subsectors. There really does not seem to be much variety in this sector I guess.
  • cman
    If you are just looking for a broad exposure to industrials, any of XLI, IYJ, VIS, EXI or FCLIX/FCYIX ( same funds) will work. They all track the broad indices with insignificant differentiation.

    If you want to stretch your neck out with an investment thesis, Ted has suggested the Aerospace and Defense ETFs above. There is also FSDAX. The latter has done very well for me as a small sector allocation in the core portfolio. However, this whole subsector is looking a bit tired now in momentum and may pull back but still worth a part allocation since the industry is very resilient.

    Another investing idea is to consider funds with more exposure to US based multinationals that get significant revenues from abroad. In particular, from developed countries rather than emerging. This sub sector has underperformed for reasons similar to CAT. If you expect international economies to improve over 2014, these may have their day. One fund to look at is FEXPX whose technicals are improving even if its recent past performance has been decent but not great. This would be like diversifying from CAT to remove company specific risk.
  • beebee
    edited January 2014
    Came across these links:

    Best Industrial Mutual Funds:
    money.usnews.com/funds/mutual-funds/rankings/industrials

    M* search:
    image

  • slick
    Thanks Bee and cman, I did look at all of the etfs, most pretty similar, except a couple of them have more small and mid cap exposure than I need, Im already almost 20% there. Seems like Fido is the main family to offer a diversified industrial, perhaps I can reconsider the aerospace when it comes back to earth :)
Sign In or Register to comment.