##  [# Industrials Take the Lead in 2025 ETF Performance Race](/sections/features/industrials-take-lead-2025-etf-performance-race) 

 

# Industrials Take the Lead in 2025 ETF Performance Race

 

 

\- A mix of tailwinds has helped boost XLI.  
\- The ETF is now 2025’s sector ETF to beat.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Jul 28, 2025

 Edited by: David Tony

 

 

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The best-performing U.S. sector so far in 2025 isn’t tech—it’s industrials.

The [**Industrial Select Sector SPDR Fund (XLI)**](/xli) is up 18.2% year to date, nearly double the S&amp;P 500’s 9.5% gain. That makes it the top-performing ETF in the popular [Sector SPDR suite](https://www.sectorspdrs.com/allsectors).

## What's Driving XLI?

One of the biggest drivers of those gains is General Electric.

The former industrial conglomerate—long criticized for losing its edge—has staged a dramatic turnaround after splitting into three focused companies: [GE Aerospace (GE)](/stock/ge), [GE Vernova Inc. (GEV)](/stock/gev) and [GE Healthcare Technologies Inc. (GEHC)](/stock/GEHC).

Two of those—GE Aerospace and GE Vernova—are held in XLI. GE Aerospace, which retained the original GE ticker, has surged 64% this year and currently makes up 6% of the ETF.

### XLI Top 10 Holdings

**Symbol**

**Holding**

**Allocation %**

GE

GE Aerospace

6%

RTX

RTX Corp.

4.5%

CAT

Caterpillar Inc.

4.3%

UBER

Uber Technologies Inc.

4%

BA

Boeing Co.

3.8%

GEV

GE Vernova Inc.

3.7%

HON

Honeywell International Inc.

3.3%

ETN

Eaton Corp. Plc

3.2%

UNP

Union Pacific Corp.

2.9%

DE

Deere &amp; Co.

2.8%

ADP

Automatic Data Processing Inc.

2.6%

*Source:* [*etf.com &amp; FactSet Data*](https://www.etf.com/XLI)

Meanwhile, GE Vernova, the energy-focused spin-off with major exposure to nuclear power, has exploded higher, up 96% year to date. At a 3.7% weight, it’s the second-biggest contributor to XLI’s performance in 2025.

Broader strength in aerospace and defense stocks has helped as well. [RTX Corp. (RTX)](/stock/rtx), at a 4.5% weight, and [Boeing Co. (BA)](/stock/ba), at 3.7%, are up 31% and 37%, respectively, as defense spending and aerospace demand remain elevated.

Outside that space, [Uber Technologies Inc. (UBER)](/stock/uber), at 4%, has also been a standout, rising 50% amid strong earnings and continued growth in both ride-hailing and delivery.

 
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## XLI Tailwinds

In short, it’s been a mix of tailwinds for XLI—booming aerospace and defense, renewed investor interest in nuclear energy and exposure to industrial firms tied to the AI-driven data center buildout. These gains have more than offset macro concerns around tariffs and trade.

With an eclectic mix of holdings and multiple catalysts firing at once, XLI has become 2025’s sector ETF to beat.



 

 

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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


 Related Topics  [Industrials](http://www.etf.com/topics/industrials) 

 [Aerospace &amp; Defense](http://www.etf.com/topics/aerospace-defense) 

 [Nuclear Energy](http://www.etf.com/topics/nuclear-energy) 

 [Artificial Intelligence](http://www.etf.com/topics/artificial-intelligence) 

 [SPDR](http://www.etf.com/topics/spdr)