VIS ETF

What are you actually allocating to?

By purchasing VIS, you gain exposure to shares of 391 US industrial companies – from jet engine manufacturers and heavy equipment makers to logistics giants and defense contractors.

VIS performance is driven by:

• appreciation or decline in the market value of portfolio companies;
• the fund's dividend yield (~1.04% per year).

Your position is directly tied to the business results of companies that manufacture equipment, build infrastructure, run logistics networks, and serve the defense sector. Key performance drivers include the state of the US economy, public and private infrastructure spending, defense budgets, and global trade.

Fund composition

The VIS portfolio includes 391 companies spanning all industrial subsectors:

• Aerospace and defense – manufacturers of engines, aircraft, military equipment, and components.
  GE Aerospace (5.08%), RTX Corporation (3.82%), Boeing (2.50%), Lockheed Martin (1.93%), Howmet Aerospace (1.41%), Northrop Grumman (1.38%)
• Power equipment – companies producing turbines, generators, and grid infrastructure.
  GE Vernova (3.33%), Eaton Corporation (2.05%)
• Construction and agricultural equipment – manufacturers of heavy machinery for construction, mining, and agriculture.
  Caterpillar (4.89%), Deere & Company (2.27%)
• Logistics and transportation – freight railroads, courier and transport companies.
  Uber (2.09%), Union Pacific (1.88%), FedEx (1.22%), UPS (1.20%)
• Diversified industrials – multi-segment industrial conglomerates.
  Honeywell (2.17%), Parker-Hannifin (1.79%), 3M (1.23%), Emerson Electric (1.19%)
• Engineering and infrastructure – companies that build and service industrial facilities.
  Trane Technologies (1.44%), Quanta Services (1.18%)

The fund composition is reviewed in accordance with the MSCI index methodology.

How the structure works

VIS uses a standard ETF structure:

company shares are held within the fund's custodial infrastructure through State Street Bank & Trust;
the fund structure is fully transparent and disclosed on a daily basis;
the fund is overseen by US regulators and auditors.

The fund's AUM is approximately $7.19 billion. As an index fund, VIS follows the composition and weightings of the MSCI US Investable Market Industrials 25/50 Index.

Fees

Returns are driven by changes in the fund's market value. You acquire a share in VIS at the current price and realize the value upon exit.

• Total Expense Ratio (TER): 0.09% per year – one of the lowest fees on the ETF market.

When purchasing VIS through the Regolith platform, a 2% entry fee applies. Performance fee: 0%.

The role of VIS in a portfolio

VIS is used as a tool for gaining exposure to the growth of the US industrial sector. The fund can serve the following purposes:

• A position in the real economy – unlike tech ETFs, VIS provides access to companies that manufacture physical goods, build infrastructure, and run logistics networks. This is a sector with real revenue and dividends.
• Maximum diversification – 391 companies of all sizes: from giants (GE Aerospace, Caterpillar) to mid- and small-cap industrial firms.
• The infrastructure boom – the US government is directing trillions of dollars into upgrading infrastructure (bridges, roads, power grids). Industrial companies are the direct beneficiaries.
• The defense sector – Lockheed Martin, RTX, Northrop Grumman, Boeing. Defense budgets are rising globally.
• Low fees – a TER of 0.09% means nearly all returns stay with the holder.

US industrial sector: current context

The US industrial sector is showing steady growth. Over the past six years, VIS has delivered an average annual return of ~13.8% – while experiencing shallower drawdowns than technology ETFs (–8.57% in 2022 vs. –33% for SMH).

The fundamentals support the sector. The Infrastructure Investment and Jobs Act is directing $1.2 trillion into the construction and modernization of roads, bridges, power grids, and water systems. The CHIPS Act is driving the construction of new manufacturing facilities on US soil. Defense spending continues to rise amid geopolitical tensions.

GE Aerospace is reporting record demand for jet engines. Caterpillar is growing sales on the back of a construction boom. Union Pacific and FedEx are benefiting from rising domestic trade.

For those seeking exposure to the real economy with moderate volatility, VIS remains one of the most balanced sector instruments available.

Risks

Holding VIS involves a number of factors typical of the industrial sector:

• Cyclicality – industrial companies are sensitive to economic cycles. During recessions, demand for equipment, construction, and logistics declines.
• Dependence on government spending – a significant portion of revenue for defense and infrastructure companies depends on government contracts and budgets.
• Trade wars – the industrial sector is sensitive to tariffs and trade restrictions. Export duties can compress margins.
• Labor risks – strikes and labor shortages can disrupt production (as demonstrated by the Boeing strike in 2024).
• Moderate concentration – the top 10 holdings account for ~30% of the fund, but diversification (391 companies) reduces overall risk.
• Commodity prices – rising costs of metals, energy, and components increase production costs.

As an equity instrument, the fund is subject to market fluctuations and does not guarantee a positive outcome. You may lose part or all of your allocated capital.

Instrument parameters

• Ticker: VIS
• Type: US industrial sector ETF
• Exchange: NYSE Arca
• Management type: Passive (index-tracking)
• Index: MSCI US Investable Market Industrials 25/50 Index
• Number of companies: 391
• AUM: ~$7.19 billion
• Expense ratio: 0.09%
• Beta: ~1.05
• Dividend yield: ~1.04% per year
• ISIN: US92204A6038

Deposit and withdrawal details via Regolith

VIS purchases are executed on a rolling basis without a fixed date. Transactions are processed 1–3 times per week.

• Minimum holding period – 1 week
• Minimum amount – $50
• Entry fee – 2%
• Performance fee – 0%