This ETF is one of several options offering exposure to the U.S. industrials sector, offering a way to access a corner of the U.S. economy that includes transportation firms, providers of commercial and professional services, and manufacturers of capital goods. Given the sector-specific focus, IYJ likely doesn't deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the industrials sector or as part of a sector rotation strategy. Perhaps the biggest drawback of IYJ relates to fees; the expense ratio of this fund is considerably higher than those of XLI, VIS, and FIL, some of which are available for commission-free trading as well. As far as the underlying portfolio goes, IYJ offers an impressive depth of holdings with hundreds of individual stocks. With the exception of GE, which accounts for a big chunk of assets, the exposure offered is generally well balanced; those seeking to avoid this concentration may prefer the equal-weighted RGI. IYJ is a fine fund, but there are cheaper and more balanced options available out there; investors seeking industrials exposure can likely do better.