The S&P Industrials Sector Is Showing Leadership For November

For the month of November, the industrial sector is among S&P leaders.

Top stocks in the sector include:

• Parker-Hannafin Corporation PH
• General Dynamics Corporation GD
• Textron Inc. TXT
• Robert Half International Inc. RHI
• Delta Air Lines, Inc. DAL

Although there are plenty of blue-chip, established companies in the sector, it is not flashy like technology, consumer discretionary or even healthcare and financials. Typically, it's not a sector that spawns the kind of innovation that gets a lot of media coverage.

Related Link: Strong Industrial Stock Earnings Put These ETFs In Focus

Nonetheless, investors have been plowing money into the sector.

Actively-Managed Industrial Fund

A top industrials sector actively-managed fund is Fidelity Select Transportation FSRFX. It typically invests at least 80 percent of assets in foreign and domestic transportation-industry stocks. Managers use fundamental analysis to choose investments. Its year-to-date total return, which includes price appreciation and dividends, is 23.16 percent.

Other Industrial Funds To Watch: Rydex And Putnam

Another top-performing fund from the sector is the Rydex Series Transportation Fund Class A RYTSX. This fund seeks to invest at least 80 percent of net assets in U.S. transportation company stocks, with a focus on mid-caps. It also invests in derivatives, such as futures and options. The fund may also purchase American Depositary Receipts to get exposure to overseas-based transportation companies.

The fund's year-to-date total return is 15.40 percent.

The Putnam Global Industrial Fund Class A PGIAX is another actively-managed industrials sector fund that has performed well recently. While its year-to-date return is a puny 0.61 percent, it has rallied in the past three months, showing a return of 2.11 percent.

This fund invests in growth and value stocks, with market values in the large- and mid-cap categories. Potential investments include companies active in the research, development, manufacturing, distribution, supply or sale of products and services within the industrials sector. In other words, there is a fairly wide universe of stocks within the sector that the fund manager can choose.

The fund may also use derivatives, such as futures and options, currency transactions, warrants and swaps.