Should You Invest in the First Trust RBA American Industrial Renaissance ETF (AIRR)?

The First Trust RBA American Industrial Renaissance ETF (AIRR) was launched on 03/10/2014, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.Index DetailsThe fund is sponsored by First Trust Advisors. It has amassed assets over $3.36 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. AIRR seeks to match the performance of the Richard Bernstein Advisors American Industrial Renaissance Index before fees and expenses.The Richard Bernstein Advisors American Industrial Renaissance Index is measures the performance of small and mid cap US companies in the industrial and community banking sectors.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.70%, making it one of the most expensive products in the space.It has a 12-month trailing dividend yield of 0.18%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Industrials sector--about 86.40% of the portfolio. Financials and Utilities round out the top three.Looking at individual holdings, Core & Main, Inc. (class A) (CNM) accounts for about 3.33% of total assets, followed by Mueller Industries, Inc. (MLI) and Granite Construction Incorporated (GVA).The top 10 holdings account for about 31.06% of total assets under management.Performance and RiskSo far this year, AIRR has added roughly 2.15%, and is up about 39.67% in the last one year (as of 01/30/2025). During this past 52-week period, the fund has traded between $56.03 and $86.09.The ETF has a beta of 1.26 and standard deviation of 24.56% for the trailing three-year period, making it a high risk choice in the space. With about 55 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust RBA American Industrial Renaissance ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, AIRR is an outstanding option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.85 billion in assets, Industrial Select Sector SPDR ETF has $21.58 billion. VIS has an expense ratio of 0.10% and XLI charges 0.09%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust RBA American Industrial Renaissance ETF (AIRR): ETF Research Reports Mueller Industries, Inc. (MLI): Free Stock Analysis Report Vanguard Industrials ETF (VIS): ETF Research Reports Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Granite Construction Incorporated (GVA): Free Stock Analysis Report Core & Main, Inc. (CNM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks