The iShares U.S. Industrials ETF (IYJ) was launched on June 12, 2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $1.82 billion, making it one of the larger ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. IYJ seeks to match the performance of the Dow Jones U.S. Industrials Index before fees and expenses.
The Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index measures the performance of the industrial sector of the U.S. equity market. It includes: construction & materials, aerospace & defense, general industrials, electronic & electrical equipment, industrial engineering, industrial transportation & support services. The Index is capitalization-weighted.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.38%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.72%.
Sector Exposure and Top Holdings
It 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 71.6% of the portfolio. Financials and Materials round out the top three.
Looking at individual holdings, Visa Inc Class A (V) accounts for about 6.83% of total assets, followed by Mastercard Inc Class A (MA) and Caterpillar Inc (CAT).The top 10 holdings account for about 35.83% of total assets under management.
Performance and Risk
So far this year, IYJ has gained about 9.65%, and is up roughly 16.19% in the last one year (as of 06/25/2026). During this past 52-week period, the fund has traded between $138.91 and $162.73.
The ETF has a beta of 1.02 and standard deviation of 16.05% for the trailing three-year period, making it a medium risk choice in the space. With about 202 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares U.S. Industrials 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, IYJ is a great 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.
First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $11.06 billion in assets, State Street Industrial Select Sector SPDR ETF has $32.50 billion. AIRR has an expense ratio of 0.69%, and XLI charges 0.08%.
Bottom Line
To 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.
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iShares U.S. Industrials ETF (IYJ): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).