Slim Pickings For ETFs With Caterpillar Exposure

Dow darling Caterpillar CAT, the world's largest maker of construction and mining equipment, is out with third-quarter earnings this morning, saying profit almost doubled as revenue surged 53%. This has the potential to be big news for the Dow as the index is price-weighted and Caterpillar has one of the highest price tags in the index. Surprisingly, the ETF pickings for a play on Caterpillar are pretty slim. With an allocation to Caterpillar of 5.5%, the SPDR Dow Jones Industrial Average DIA offers the most exposure to the stock. After DIA, only the Industrial Select Sector SPDR XLI offers more than a 4% allocation to Caterpillar. The longer-term investor may wanted to consider the Vanguard Dividend Appreciation ETF VIG with its 2.66% weight to Caterpillar while the more active trader may want to take a look at the leveraged Proshares Ultra Industrials ETF UXI.