U.S. Industrials Sector Set to Thrive through 2025 with VIS ETF Offering Strong Investment Option

The U.S. industrial sector is expected to grow through 2025 due to reshoring, aerospace demand, and infrastructure trends. The Vanguard Industrials ETF (VIS) is a strong investment option, with a large portfolio of 391 holdings spanning 24 subsectors. VIS provides diversified exposure to the U.S. industrial sector and has outperformed its benchmark in recent years.

The U.S. industrial sector is poised for growth in 2025, driven by reshoring, increased aerospace demand, and infrastructure trends. These factors have led to a positive outlook for the sector, making it an attractive investment opportunity. One strong option for investors is the Vanguard Industrials ETF (VIS), which provides diversified exposure to the U.S. industrial sector.

The Vanguard Industrials ETF (VIS) holds 391 stocks across 24 subsectors, offering a well-diversified portfolio. The fund's top 10 holdings account for only 28.41% of the total assets, indicating a balanced approach to risk management. The fund is heavily exposed to the aerospace and defense industry, which represents 22.10% of its portfolio, and is expected to benefit from the global defense and aerospace market's growth. This sector is projected to grow at a CAGR of 5.76% to 2030, reaching $694.86 billion [2].

The industrial machinery and supplies industry, which benefits from the reshoring trend, also plays a significant role in VIS's portfolio, accounting for approximately 10%. Since 2020, $1.9 trillion in manufacturing projects have been announced, with 25% already underway. This trend is expected to continue, driving demand for equipment and benefiting companies like Caterpillar and Deere & Co. [2].

The Vanguard Industrials ETF (VIS) has consistently outperformed its benchmark in recent years, with similar 1Y, 3Y, and 5Y returns close to 20%. The fund's P/E ratio of 26 is within industry norms, pricing the sector's growth expectations. The low 0.09% expense ratio, combined with the fund's large AUM and high trading volume, makes it a cost-efficient option for investors [2].

In conclusion, the U.S. industrial sector's growth prospects in 2025 present attractive investment opportunities. The Vanguard Industrials ETF (VIS) is a strong choice for investors seeking diversified exposure to this sector. With a well-diversified portfolio and a strategic focus on growth industries, VIS offers a balanced approach to investing in the U.S. industrial sector.

References:
[1] https://www.gurufocus.com/news/2994024/nxp-semiconductors-nxpi-exceeds-q2-2025-expectations-positive-outlook-shared
[2] https://seekingalpha.com/article/4803066-vis-a-strong-option-to-invest-in-us-industrials
[3] https://www.gurufocus.com/news/2983715/digi-power-x-acquires-supermicro-nvidia-b200-systems-to-launch-tier-3-neocloud-ai-infrastructure-dghi-stock-news