Should You Invest in the First Trust RBA American Industrial Renaissance ETF (AIRR)?

Core Insights - The First Trust RBA American Industrial Renaissance ETF (AIRR) is a passively managed ETF launched on March 10, 2014, designed to provide broad exposure to the Industrials - Broad segment of the equity market [1] - AIRR has amassed over $4.59 billion in assets, making it one of the largest ETFs in its category [3] - The ETF has a year-to-date return of approximately 14.38% and a 12-month return of about 31.3% as of August 6, 2025 [8] Fund Overview - AIRR seeks to match the performance of the Richard Bernstein Advisors American Industrial Renaissance Index, which focuses on small and mid-cap US companies in the industrial and community banking sectors [4] - The ETF has an annual operating expense ratio of 0.7%, which is relatively high compared to other ETFs [5] Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, comprising about 91.1% of the portfolio [6] - Dycom Industries, Inc. (DY) is the largest holding at approximately 3.37% of total assets, followed by Emcor Group, Inc. (EME) and Bwx Technologies, Inc. (BWXT) [7] - The top 10 holdings account for about 29.85% of total assets under management [7] Performance Metrics - AIRR has a beta of 1.29 and a standard deviation of 24.95% over the trailing three-year period, indicating a higher risk profile [8] - The ETF has traded between $61.92 and $88.54 in the past 52 weeks [8] Alternatives - AIRR holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected asset class return, expense ratio, and momentum [9] - Other ETFs in the industrials space include Vanguard Industrials ETF (VIS) and Industrial Select Sector SPDR ETF (XLI), with VIS having $6.01 billion in assets and XLI at $23.09 billion [11]