This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Top 10 Materials Sector ETFs

Stocks in this article: XLB IYM MXI VAW FXZ PYZ

Our goal in this profile is to help investors wade through the many competing ETF offerings available. Using our long experience as an ETF publication, we can help select those ETFs that matter and may or may not be repetitive. The result is a more manageable list of issues from which to view and make selections.

The materials sector represents the well-springs of industrial growth given whatever the demand is for raw materials found in base metals and even petroleum. Weak stocks in this sector equate well with the state of manufacturing conditions.

There are currently more than 14 ETFs oriented to the materials sector with more on the way. The following analysis features a fair representation of ETFs available. We believe from these investors may choose an appropriate ETF to satisfy the best index-based offerings individuals and financial advisors may utilize.

We're not ranking these ETFs favoring one over another so don't let the listing order mislead you. Although we may use some of these in ETF Digest portfolios it's not our intention to recommend one over another.

ETFs are based on indexes tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones and so forth. Also included are some so-called "enhanced" indexes that attempt to achieve better performance through more active management of the index.

Where competitive issues exist and/or repetitive issues available at a fee cost saving we mention those as other choices. New issues are coming to market consistently (especially globally) and sometimes these issues will need to become more seasoned before they may be included at least in our listings.

For traders and investors wishing to hedge, leveraged and inverse issues are available to utilize from ProShares and Direxion and where available these are noted.

XLB (SPDR Materials Sector ETF) follows the Materials Select Sector Index. The fund was launched in December 1998. The expense ratio is .20%. AUM (Assets under Management) equal $1.8 billion and average daily trading volume is over 15.6M shares. As of late September 2011 the annual dividend yield is 2.61%. and YTD performance is -21.27%.

There are leveraged inverse and long ETFs available for hedging or speculation from ProShares and Direxion Shares.

Data as of September 2011

XLB Top Ten Holdings & Weightings

  1. E.I. du Pont de Nemours & Company (DD): 11.34%
  2. Freeport-McMoRan Copper & Gold B (FCX): 11.30%
  3. Monsanto Company (MON): 9.35%
  4. The Dow Chemical Co (DOW): 8.46%
  5. Praxair, Inc. (PX): 7.58%
  6. Newmont Mining Corporation (NEM): 5.91%
  7. Air Products & Chemicals Inc (APD): 4.39%
  8. Alcoa Inc (AA): 3.50%
  9. CF Industries Holdings Inc (CF): 3.39%
  10. Ecolab, Inc. (ECL): 3.21%

IYM (iShares DJ Basic Materials ETF) follows the Dow Jones U.S. Basic Materials Index. The fund was launched in June 2006. The expense ratio is .48%. AUM is $550 million and average daily trading volume is 900K shares. As of late September 2011 the annual dividend yield is 1.43% and YTD return -24.40%.

Data as of September 2011

IYM Top Ten Holdings & Weightings

  1. E.I. du Pont de Nemours & Company (DD): 9.14%
  2. Freeport-McMoRan Copper & Gold B (FCX): 9.12%
  3. The Dow Chemical Co (DOW): 6.86%
  4. Newmont Mining Corporation (NEM): 6.22%
  5. Praxair, Inc. (PX): 6.15%
  6. Air Products & Chemicals Inc (APD): 3.34%
  7. Alcoa Inc (AA): 2.80%
  8. Peabody Energy Corporation (BTU): 2.71%
  9. CF Industries Holdings Inc (CF): 2.67%
  10. Ecolab, Inc. (ECL): 2.57%

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs