Missed GE Aerospace Rally? XLI Holders Made More Money
Investors who missed GE Aerospace's rally this year may regret it, but the XLI industrial ETF actually outperformed the stock over the same period.
Investors kicking themselves for missing GE Aerospace's (GE) big run this year might want to check what the boring industrials ETF quietly did over the exact same stretch before feeling too bad about it.
Details
According to a report from 24/7 Wall St., the Industrial Select Sector SPDR Fund (XLI), which tracks the industrial sector of the S&P 500, outperformed GE Aerospace during the same period. This means that investors who held the ETF actually made more money than those who bet on the single stock.
Context
This comparison comes at a time when GE Aerospace has seen strong performance driven by demand for jet engines and maintenance services. However, diversification across the industrial sector through XLI provided better returns, reminding investors of the importance of risk distribution.
What This Means for Investors
This comparison highlights that picking individual stocks may not always be the best choice, especially in sectors experiencing broad growth. Investing in ETFs could be a safer and more rewarding option.
Frequently Asked Questions
Found this useful? Share it