The Vanguard Industrials ETF (VIS) is an exchange-traded fund designed to track the performance of U.S. industrial companies. The ETF is managed by Vanguard and trades under the ticker VIS on the NYSE Arca.

Classified as a sector equity ETF, the fund invests in U.S. companies operating in industries such as capital goods, transportation, commercial services, engineering, construction, logistics, defense, and manufacturing. Its strategy provides broad exposure to the U.S. industrial sector.

The ETF follows a passive management approach and seeks to replicate the performance of the MSCI US Investable Market Industrials 25/50 Index, a benchmark composed of large-, mid-, and small-cap companies classified within the industrial sector under the Global Industry Classification Standard (GICS).

Diversification and sector exposure

VIS provides exposure primarily associated with:

• Industrials.

• Capital goods.

• Transportation.

• Aerospace and defense.

• Logistics.

• Construction.

• Commercial services.

• U.S. equity market.

The portfolio includes hundreds of companies across multiple industrial industries, including equipment manufacturers, railroads, aerospace companies, transportation providers, industrial service firms, and infrastructure suppliers.

The ETF's performance reflects the U.S. industrial sector, which is generally influenced by economic cycles, infrastructure investment, and manufacturing activity.

Structure and costs

VIS shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund carries a low expense ratio, consistent with Vanguard's ETF lineup, and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Vanguard Industrials ETF was launched in 2004 to provide investors with a low-cost, passive vehicle for gaining exposure to the U.S. industrial sector.

Since inception, the fund has tracked multiple phases of the U.S. economy, including periods of industrial expansion, infrastructure investment, and shifts in global demand for manufactured goods.

In recent years, infrastructure modernization, industrial automation, growth in the aerospace industry, increased defense spending, and the restructuring of global supply chains have continued to shape the performance of the companies represented in the ETF's portfolio.

Additional Information

Vanguard Industrials ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $8.12 billion.

Over the past 12 months, Vanguard Industrials ETF recorded a return of 22.63%, with its price trading between $283.32 and $360.38 during the same period.

The ETF is traded under the ticker VIS.