Industrials covers aerospace/defense, machinery, transportation, construction, and industrial conglomerates. A cyclical sector closely tied to economic cycles and capital expenditure.

Key Holdings: GE Aerospace, Caterpillar, RTX (Raytheon), Union Pacific, Honeywell

Drivers: Capital expenditure cycles, infrastructure spending, defense budgets, ISM Manufacturing PMI

Characteristics: Cyclical bellwether; benefits from reshoring and infrastructure investment trends