What Is the VIS ETF? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
The Vanguard Industrials ETF (VIS) invests in the US industrials sector. Its strengths are a low expense ratio and broad diversification across large-, mid-, and small-cap stocks, while single-sector concentration and quarterly dividends are the key selection criteria. It holds a wide range of aerospace and defense, machinery, and transportation stocks.
SubscribeWhat Is the Vanguard Industrials ETF?
This ETF tracks the MSCI US Investable Market Industrials 25/50 Index and invests across the entire US industrials sector. It holds a variety of industries, including aerospace and defense, machinery, transportation, construction, and industrial conglomerates, on a market-cap-weighted basis, so it follows the performance of the sector as a whole.
It suits long-term investors who want concentrated, diversified exposure to the US industrials sector.
It is a passively managed (index-tracking) ETF operated by Vanguard.
How Does the Vanguard Industrials ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | MSCI US Investable Market Industrials 25/50 |
| Management Style | Passive (index-tracking) |
| Issuer | Vanguard |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.09% |
The fund fully replicates the index, holding the industrials constituents at their market-cap weights. It covers not only large caps but also mid- and small-cap stocks, giving it broad coverage of the sector. Rebalancing is applied quarterly according to the index methodology, and low turnover keeps management efficiency high.
- A low expense burden among sector ETFs
- Broad diversification that extends beyond large caps to mid- and small-cap stocks
Vanguard Industrials ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $7.7B, and the expense ratio is 0.09% per year.
Its cost burden is relatively low compared with similar industrials sector ETFs, and Vanguard's signature full-replication approach tracks the sector broadly.
Vanguard Industrials ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe industrials sector moves closely with the economic cycle, and its trends take shape according to manufacturing activity, capital expenditure, and infrastructure spending. In the short term, it tends to react sensitively to changes in interest rates and economic indicators.
Investor interest tends to flow toward the industrials sector when expectations for infrastructure investment and a manufacturing recovery come into focus. When concerns about an economic slowdown grow, money sometimes shifts toward defensive sectors.
Vanguard Industrials ETF Pros and Cons
Its strengths are low fees and broad sector diversification, while its weakness is economic sensitivity stemming from concentration in a single sector.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Vanguard Industrials ETF
Direct substitutes investing in the same industrials sector include XLI, which comes from a different issuer, and FIDU, which offers broad diversification, allowing you to compare differences in fees and construction methods. If you want to narrow the sector further, you can also consider ITA, which focuses on aerospace and defense. If you want broad US core exposure that includes industrials, a total market ETF such as VTI can also be an alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VFH | Vanguard Financials ETF | $138.36 | +1.5% | $13.3B | 0.09% | 1.7% | +9.1% |
 ONEQ | Fidelity Nasdaq Composite Index ETF | $103.18 | -1.4% | $10.9B | 0.21% | 0.5% | +9.6% |
 FV | First Trust Dorsey Wright Focus 5 ETF | $75.86 | -0.3% | $4.0B | 0.89% | 0.35% | +22.6% |
 IYF | iShares U.S. Financials ETF | $132.22 | +1.2% | $3.7B | 0.37% | 1.47% | +8.7% |
 SKYY | First Trust Cloud Computing ETF | $167.42 | -2.8% | $3.6B | 0.60% | - | +19.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| CAT | Caterpillar Inc | 0.11% | $647.39 | -9.3% | $297.6B | 27.9 | 0.96% |
| GE | GE Aerospace | 0.10% | $313.05 | +4.0% | $323.5B | 36.2 | 0.58% |
| RTX | RTX Corp | 0.07% | $199.40 | +1.8% | $269.1B | 32.4 | 1.44% |
| GEV | GE Vernova Inc | 0.07% | $887.85 | +1.1% | $236.5B | 23.3 | 0.23% |
| BA | Boeing Co | 0.05% | $172.65 | +3.3% | $136.8B | 19.0 | 0.02% |
Vanguard Industrials ETF Investor Checkpoints
Here are the points to review before investing in VIS. It can serve as a core holding for industrials sector exposure, but costs, sector concentration, economic sensitivity, and currency exposure are items to confirm before investing.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of cumulative costs over a long holding period | Low |
| 📊 Sector Concentration | Check the degree of exposure to the single industrials sector | Sector concentrated |
| 📉 Economic Sensitivity | Review the economic cycle and capital expenditure trends | Needs review |
| 💱 Exchange Rate | Impact on returns when converted to Korean won | Not currency hedged |
Single-sector concentration in industrials and economic sensitivity are the main drivers of volatility. During an economic slowdown, the sector as a whole can weaken together, so you need to adjust its weight within your portfolio.
It is a suitable choice for long-term investors who want to diversify into the US industrials sector at low cost. If issuer preference or more granular exposure matters, we recommend comparing it with alternatives such as XLI and ITA.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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