GET DAILY SIGNALSMADE vs. XLI: A Focused Manufacturing ETF Compared to the Broad Industrial Sector Leader
Key Takeaways
- MADE is a narrowly focused, non-diversified manufacturing theme fund, while XLI is a broad, market-capitalization-weighted industrial sector fund.
- Cost structures differ sharply: MADE charges a 0.40% expense ratio versus roughly 0.09% for XLI.
- MADE holds approximately 111 names concentrated in machinery, electrical equipment, and technology components, whereas XLI holds about 82 companies spanning aerospace and defense, machinery, and transportation.
- XLI offers materially greater scale and liquidity, with roughly $30 billion in assets under management (AUM), compared with about $50 million for MADE.
- Sector exposure diverges: MADE allocates roughly 74% to industrials, 17% to technology, and 8% to consumer cyclicals, while XLI is almost entirely invested in the industrials sector.
- Tickeron AI Verdict: XLI is the favored ticker based on cost efficiency, diversification, liquidity, and trend consistency.
Setting the Stage for This ETF Comparison
Investors evaluating industrial and manufacturing exposure often weigh a concentrated thematic vehicle against a diversified sector benchmark. The iShares U.S. Manufacturing ETF (MADE) and the Industrial Select Sector SPDR Fund (XLI) illustrate this choice. They do not compete directly on strategy; rather, they offer alternative approaches to a similar goal of capturing U.S. industrial growth. This ETF comparison examines structural differences, sector exposure, fund performance, and relative positioning to clarify which product better suits different investor objectives in the current environment. I also checked this using Tickeron’s AI Screener to see how the two line up on key metrics.
A Closer Look at the iShares U.S. Manufacturing ETF (MADE)
MADE is a passively managed fund that seeks to track the S&P U.S. Manufacturing Select Index. Launched in July 2024, it holds approximately 111 companies with significant revenue from manufacturing and manufacturing-related industries, including industrial machinery, automotive, electronics, and semiconductor capital equipment. The fund is non-diversified and carries an expense ratio of 0.40%.
Top holdings include DE (Deere & Company), ETN (Eaton), APH (Amphenol), CAT (Caterpillar), RTX (RTX Corporation), and GM (General Motors). Sector-wise, industrials dominate at roughly 74%, followed by technology near 17% and consumer cyclicals around 8%. MADE is designed to express a focused view on domestic manufacturing and potential reshoring trends, making it a thematic satellite position rather than a core holding.
Understanding the Industrial Select Sector SPDR Fund (XLI)
XLI is a passively managed fund that tracks the Industrial Select Sector Index, a market-cap-weighted subset of S&P 500 companies classified as industrials under the Global Industry Classification Standard. In operation since December 1998, XLI holds about 82 securities and charges an expense ratio of approximately 0.09%, making it one of the lowest-cost vehicles in the category.
Leading holdings include GE (GE Aerospace), CAT (Caterpillar), RTX (RTX Corporation), GEV (GE Vernova), UNP (Union Pacific), and DE (Deere & Company). Unlike MADE, XLI spans the full industrial complex, including aerospace and defense, machinery, electrical equipment, ground transportation, and air freight, offering broader diversification across the sector.
Current Industry and Thematic Backdrop
Both funds operate within a manufacturing and industrial landscape shaped by several durable themes. Government policy supporting domestic production, infrastructure investment, and reshoring has underpinned capital spending on factories and equipment. At the same time, aerospace and defense demand has been supported by elevated geopolitical tensions and replenishment cycles, while electrification and data-center buildouts have driven orders for electrical equipment and power-generation products.
Offsetting these tailwinds are cyclical risks: interest-rate sensitivity in heavy machinery, exposure to a softer agricultural cycle in equipment makers, and potential margin pressure from input costs and labor. The divergent sector weights between MADE and XLI mean these catalysts affect each fund differently, with XLI capturing broader transportation and defense exposure and MADE tilting more heavily toward machinery and technology components.
Performance and Positioning Comparison
In recent market cycles, both funds have participated in the broader industrial rally, but their relative positioning has diverged. MADE's heavier tilt toward electrical equipment, power components, and technology-oriented manufacturing has made it more sensitive to data-center and electrification momentum, while its smaller size and 0.40% fee create a modest performance drag over time. XLI's breadth across aerospace, defense, and transportation has offered steadier participation in sector rotation, and its lower cost structure preserves more of the underlying index return.
On volatility, MADE's narrower, non-diversified footprint and higher concentration in cyclical machinery names tends to produce larger swings than XLI's broader, large-cap-heavy portfolio. For investors seeking focused thematic exposure, MADE offers a sharper expression of reshoring and manufacturing trends; for those prioritizing cost efficiency, liquidity, and diversification, XLI provides a more established core holding. From what I see, the liquidity gap stands out as particularly meaningful for larger allocations.
Exploring Tickeron’s AI Screener for ETF Analysis
I’ve found Tickeron’s AI Screener helpful when comparing ETFs like these. It lets me filter on technical patterns, fundamentals, trends, and AI-driven signals to quickly surface differences in volatility, sector exposure, and performance. The tool makes it straightforward to scan for ideas and refine views without manual effort, which I’ve used here to cross-check the structural points in this comparison.
Tickeron AI Verdict
Based on observable structural factors, Tickeron's AI would likely favor XLI over MADE. XLI's combination of a materially lower expense ratio (roughly 0.09% versus 0.40%), deeper liquidity, larger asset base, broader diversification across the full industrial complex, and a longer performance track record offers stronger structural strength and cost efficiency. While MADE provides a more concentrated thematic expression of domestic manufacturing and reshoring, its higher cost and narrower exposure introduce additional volatility and concentration risk. For a core, cost-conscious industrial allocation, XLI's more balanced profile and consistent trend characteristics give it the edge in this comparison.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for XLI turns positive, indicating new upward trend
XLI saw its Momentum Indicator move above the 0 level on November 13, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 92 similar instances where the indicator turned positive. In 83 of the 92 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for XLI just turned positive on November 10, 2026. Looking at past instances where XLI's MACD turned positive, the stock continued to rise in 37 of 46 cases over the following month. The odds of a continued upward trend are 80%.
Following a +3.95% 3-day Advance, the price is estimated to grow further. Considering data from situations where XLI advanced for three days, in 277 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
XLI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
XLI moved below its 50-day moving average on November 13, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
The Aroon Indicator for XLI entered a downward trend on October 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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