John HoodIndustrial Select Sector SPDR FundXLIPAST TOP PICKDec 04, 2018

Seasonal stock that will continue to own. Jan-May good time to own shares. Will continue to own. Recent pullback a good time to buy. 

Given all the economic uncertain, the agriculture sector isn't willing to invest in capital equipment (i.e. Deere), so this sector lacks investor excitement.

Large industrials are strong seasonally from late October to end-Decemeber, then January into May. If we see rotation out of tech, industrials will benefit. He expects this to happen. XLI is currently at support.

XLI charges only 10 basis points, pays a small 1.58% dividend yield, but it holds some heavy hitters: Honeywell, UPS, Union Pacific, Boeing, Raytheon and Caterpillar in that order. Yes, GE also sits in this basket, but so do Lockheed Martin and Deere. The biggest holding, Honeywell, has exposure to defense, but more so automation in manufacturing, a growing area and one that’s needed in the current labour shortage. Read: Canadian Tire, Savaria & XLI

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The industrial sector should see growth from global economic growth and increased government spending on infrastructure. Buyable at these levels. Unlock Premium - Try 5i Free

Industrial US ETF? In the US industrial sector he sees it as being a tough place to be lately. He would look at some of the BMO family of ETFs. You have to be careful that you are not too concentrated (ie. Boeing). He has owned XLI. He has a neutral view on the space and would probably wait.