Industry: 100% (As of 2025)

Top 3 Markets:

1. Mechanical Engineering: approx. 25%
2. Aerospace & Defense: approx. 20%
3. Transportation: approx. 15%

The Industrial Select Sector SPDR Fund (XLI) is an exchange-traded fund focusing on the industrial sector. The fund invests in a variety of industries within the sector, with mechanical engineering, aerospace & defense, and transportation being the largest components.

These industries are crucial for the fund's performance as they are heavily influenced by economic cycles and technological innovations. Mechanical engineering benefits from the demand for industrial equipment, while aerospace & defense is supported by government spending and international security needs. Transportation is driven by global trade and the logistics industry.

Production: No own production

The Select Sector SPDR Trust - The Industrial Select Sector SPDR Fund (ARCA:XLI) is an exchange-traded fund (ETF) and not a company that manufactures its own products. The fund invests in a variety of companies in the industrial sector that operate in the USA and worldwide. Therefore, the ETF itself does not have production facilities. Instead, it holds shares in companies that are active in various areas of industrial production, such as mechanical engineering, transportation, and construction.

Current Strategy: Diversification and Digitalization

Focus on ESG Investments: Increase by 20% (2024)

Technology Integration: Investments in Automation and AI

The Industrial Select Sector SPDR Fund (XLI) pursues a strategy focusing on diversification and digitalization to secure future growth. The fund increasingly invests in companies benefiting from technological advancements, particularly in the areas of automation and artificial intelligence.

Another emphasis is on ESG investments (Environmental, Social, and Governance), which were increased by 20% in 2024. These investments aim to promote sustainable and responsible business practices, reducing risks and opening up new growth opportunities.

Through these strategic measures, the fund positions itself to benefit from long-term industry trends while meeting investors' demands for sustainable and future-oriented investment opportunities.

Main Imported Raw Materials: Steel, Aluminum, Copper

Countries of Origin:

• Steel: China, Japan, South Korea
• Aluminum: Canada, Russia, United Arab Emirates
• Copper: Chile, Peru, Australia

The Industrial Select Sector SPDR Fund (XLI) is an exchange-traded fund that tracks companies in the industrial sector. These companies heavily rely on raw materials needed for the production of machinery, vehicles, and other industrial products.

Steel is often imported from Asian countries such as China, Japan, and South Korea, as these countries are major steel producers. Aluminum is frequently sourced from Canada, known for its aluminum production, as well as from Russia and the United Arab Emirates. Copper, another important raw material, is mainly imported from Chile and Peru, which are among the world's largest copper producers.

These imports are crucial for the production capacities of the companies included in XLI, as they form the basis for many industrial applications.

Market share of XLI: Approximately 10% of the entire US industrial sector (estimated, 2025)
Cost structure: Efficient due to diversification and economies of scale
Dividend yield: 1.8% (2025)

The competitive advantage of the Industrial Select Sector SPDR Fund (XLI) lies in its broad diversification across various industrial sectors. The fund includes large companies from the US industrial sector, giving it a stable market position.

Through diversification, XLI can benefit from the different growth cycles of industrial sectors and better mitigate risks. The efficient cost structure of the fund allows for keeping operating costs low, which has a positive impact on returns.

The dividend yield of 1.8% shows that the fund is also attractive for income-oriented investors. This strengthens its competitive advantage over less diversified and less profitable alternatives.

Institutional Investor Share: approx. 85% (2025, estimated)

Insider Buys/Sells: No significant insider transactions reported (2025, estimated)

The institutional investor share in the Industrial Select Sector SPDR Fund is traditionally high, as ETFs like XLI are often used by institutional investors to diversify their investments in the industrial sector. The estimated 85% share reflects the ongoing interest of institutional investors who focus on stable returns and diversification.

Insider buys and sells are less relevant for ETFs, as they represent a basket of stocks rather than individual companies. Therefore, there are usually no significant insider transactions reported.

Market share of XLI: Approximately 10% (2025)

Main competitors and their market share:

1. Vanguard Industrials ETF (VIS): 12%
2. iShares U.S. Industrials ETF (IYJ): 11%
3. Fidelity MSCI Industrials Index ETF (FIDU): 9%
4. SPDR S&P Aerospace & Defense ETF (XAR): 8%
5. Invesco Aerospace & Defense ETF (PPA): 7%

Moat Analysis:

The Industrial Select Sector SPDR Fund (XLI) offers investors broad diversification within the industrial sector and is known for its high liquidity and low costs. These factors can be considered a certain moat, as they make the fund attractive to institutional and retail investors.

However, compared to its competitors, XLI does not have a significant technological or product-specific advantage, as ETFs are generally passively managed and track the underlying index. The advantage of XLI lies mainly in its size and market presence, leading to stable demand and high trading volume.

Competitors, especially Vanguard and iShares, offer similar benefits in terms of diversification and cost structure. Some specialized ETFs, such as the SPDR S&P Aerospace & Defense ETF, may have a stronger moat in the form of specialized expertise and market knowledge due to their focus on specific industries.

Overall, the moat of XLI is rather moderate and is based on its market position and liquidity, while specialized ETFs may have a stronger moat due to their niche focus.

Industry Growth: 4.5% annually (2025, estimate) Technological Innovations: High investments in automation and digitalization Economic Conditions: Stable, with moderate growth in industrial production

The Industrial Select Sector SPDR Fund (ARCA:XLI) offers broad diversification within the industrial sector, benefiting from a stable economic recovery and ongoing investments in technology and infrastructure. The industry sector shows solid growth of around 4.5% annually, supported by increasing demand for automation and sustainable solutions.

The companies within the XLI fund are heavily investing in technological innovations, especially in automation and digitalization, enhancing their competitiveness and efficiency. These investments could lead to improved profitability in the long term.

The economic conditions are stable, with moderate growth in industrial production, which benefits the fund. Given these factors, the XLI fund could be an attractive investment opportunity for investors looking to benefit from the long-term growth prospects of the industrial sector.

Dividend Yield: 1.8% (estimated for 2025)
Dividend History: Quarterly distribution, consistent for several years

The Industrial Select Sector SPDR Fund (XLI) regularly pays a dividend. The distributions are made quarterly and have been consistent for several years, indicating a reliable dividend policy.

The estimated dividend yield of 1.8% for 2025 is based on historical distributions and current market trends. XLI invests in a wide range of industrial companies that tend to generate stable cash flows, contributing to the reliability of dividends.

Therefore, investors can expect a continuous dividend payment as long as the underlying companies continue to deliver solid financial performance.