The iShares U.S. Industrials ETF Eyes $115 as Rally Continues

The industrial sector of the United States stock market has performed well this year as the government focuses on rebuilding the country.

IYJ is Rallying Ahead of 2022

The iShares U.S. Industrials ETF (IYJ) is one of the best-performing exchange-traded funds in its sector heading into the new year. The fund is currently in the green zone and looks set to rally higher over the coming trading sessions.

The fund is designed to provide investors broad exposure to the Industrials – Broad segment of the stock market. The iShares U.S. Industrials ETF is a passively managed fund launched that has been around since 2000.

The fund is sponsored by Blackrock and currently has more than $1.7 billion in assets under management, making it one of the larger ETFs attempting to match the performance of the Industrials – Broad segment of the stock market. Before fees and expenses, the ETF is designed to match the performance of the Dow Jones U.S. Industrials Index.

This index measures the performance of the industrial sector of the United States stock market. It covers areas such as construction & materials, general industrials, electronic & electrical equipment, aerospace & defense, industrial engineering, industrial transportation & support services.

Since the start of the year, IYJ has added 17% to its value, making it one of the top performers in the market. At press time, the fund is trading above $112 after adding 0.21% to its value in the past 24 hours.

IYJ Could Cross the $115 Psychological Level Soon

The IYJ/USD daily chart is bullish, thanks to the ETF’s performance in recent days. The MACD line is above the neutral zone, indicating a bullish trend. The RSI of 57 also shows that IYJ could soon enter the overbought region. At press time, IYJ is trading above its 50-day moving average of $110.

If the current market momentum is maintained, iShares U.S. Industrials ETF could surpass the $115 resistance level over the next few sessions. The fund has annual operating expenses of 0.41%, which is similar to most peer products in the space. The ETF has a 12-month trailing dividend yield of 0.76%.