The industrials sector, represented by the Industrial Select Sector SPDR ETF (NYSEARCA: XLI), has been a quiet outperformer so far in 2025, posting a 5.2% gain compared to the benchmark’s 4.3%. What’s even more notable is that the sector ETF’s current positioning suggests the potential for further upside, given its technical setup. Having consolidated for nearly a month, XLI appears to be edging closer to a potential breakout higher, especially as the broader market continues to reach new all-time highs.
With this outperformance, strong inflows into the sector, and an overall bullish setup, it’s worth looking at industrials and some of the most attractive individual stocks within the sector.
