If you were asked which type of ETF has managed to beat the S&P 500 for three consecutive years, the obvious answer would likely be funds tied to AI chips or Big Tech themes. And you would not be wrong—the generative AI frenzy has certainly propped up the facade of the U.S. stock market. However, far from the spotlight, a fund that owns zero shares of Nvidia and steers entirely clear of the “Magnificent Seven” has quietly delivered a report card that puts most tech-heavy ETFs to shame.
That fund is the First Trust RBA American Industrial Renaissance ETF (AIRR).
There are no semiconductors in its portfolio. No cloud computing. It is virtually insulated from any large-cap technology company. Instead, this ETF is almost entirely dedicated to small- and mid-cap U.S. industrial stocks and community banks. It sounds like a relic of a bygone era, yet it has produced staggering returns: an average annual gain of 38.9% over the past three years and 21.7% over the past decade. Over the same stretch, the S&P 500 has been left in the dust.
The secret lies in these words: “American manufacturing reshoring.”
AIRR tracks the American Industrial Renaissance Index, developed by Richard Bernstein Advisors. The stock selection logic is straightforward: start with the Russell 2500 universe and screen for infrastructure, manufacturing, transportation, and related service companies that derive at least 75% of their revenue from U.S. domestic sources. Community banks are included as well because they function as the financial “blood bank” for small and mid-sized factories.
Over the last few years, a combination of pandemic-era supply chain breakdowns, rising geopolitical friction, and tariff policies from the Trump administration forced U.S. corporations to reassess the fragility of offshore production. Bringing factories back home has become a rare source of bipartisan consensus. Holdings within AIRR—such as Argan, MasTec, Comfort Systems, and Sterling Infrastructure—are the direct beneficiaries of this repatriation wave.
Compared to multinational giants, small and mid-sized industrial firms have a distinct advantage: agility. When tariffs inflate the cost of imports, these smaller players pivot to domestic supply chains with far less friction. Data from the Institute for Supply Management supports this narrative. While manufacturing PMI readings largely indicated contraction throughout 2023 and 2024, activity has returned to expansion territory in 2025—providing the macroeconomic fuel for AIRR’s continued upward trajectory.
The Numbers Tell the Story: AIRR vs. VOO
| Metric | AIRR | VOO |
| Strategy | Small/Mid-Cap Reshoring | Large-Cap Core Broad Market |
| 2023 Return | +31.4% | +26.3% |
| 2024 Return | +33.5% | +25.0% |
| 2025 Return | +27.9% | +17.8% |
| Number of Holdings | 52 | 504 |
| Expense Ratio | 0.69% | 0.03% |
| Sector Weight | Industrials 92%, Financials 8% | Tech 32%, Financials 13% |
Source: AIRR and VOO official disclosures
Even with this stellar track record, investors should retain a measure of sobriety. AIRR carries an expense ratio of 0.69%, leaving far less margin for error regarding thematic longevity compared to a broad market index fund. Furthermore, the recent U.S. Supreme Court ruling striking down the bulk of the Trump-era tariff framework may ease the immediate financial urgency driving reshoring decisions. While the broader trend of global supply chain fragmentation appears irreversible, the diminishing marginal returns from policy tailwinds warrant close monitoring.
That said, this ETF—which managed to outperform without touching AI—offers a distinct perspective: When the crowd is gridlocked in the tech lane, true excess returns are sometimes found on the dusty factory roads less traveled.
