U.S. Markets closed
  • S&P 500

    3,768.25
    -27.29 (-0.72%)
     
  • Dow 30

    30,814.26
    -177.24 (-0.57%)
     
  • Nasdaq

    12,998.50
    -114.10 (-0.87%)
     
  • Russell 2000

    2,123.20
    -32.15 (-1.49%)
     
  • Crude Oil

    52.12
    -0.24 (-0.46%)
     
  • Gold

    1,827.70
    -2.20 (-0.12%)
     
  • Silver

    24.84
    -0.03 (-0.10%)
     
  • EUR/USD

    1.2086
    -0.0078 (-0.6406%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • Vix

    24.34
    +1.09 (+4.69%)
     
  • GBP/USD

    1.3593
    -0.0047 (-0.3412%)
     
  • USD/JPY

    103.8230
    -0.0190 (-0.0183%)
     
  • BTC-USD

    36,201.35
    +1,200.69 (+3.43%)
     
  • CMC Crypto 200

    701.93
    -33.21 (-4.52%)
     
  • FTSE 100

    6,735.71
    -66.25 (-0.97%)
     
  • Nikkei 225

    28,519.18
    -179.12 (-0.62%)
     

U.S. Basic Materials ETF (IYM) Hits a 52-Week High

Sweta Jaiswal, FRM
·2 min read

For investors looking for momentum, iShares U.S. Basic Materials ETF IYM is probably a suitable pick. The fund just hit a 52-week high and is up 91.2% from its 52-week low price of $59.49/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

IYM in Focus

The fund provides exposure to U.S. companies involved with the production of raw materials, including metals, chemicals and forestry products. It has AUM of $880.4 million and charges expense ratio of 43 basis points, as stated in the prospectus.

Why the Move?

The materials sector, which is the most sensitive to global economic growth expectations, is gaining from a dovish Fed. Lower rates put pressure on the U.S. dollar that makes dollar-denominated materials cheap for foreign investors, raising demand for products that these companies sell. Also, as the sector is highly dependent on interest rates for capital expenditures, lower rates are a boon. The coronavirus vaccine rollout, introduction of the much-awaited fresh round of stimulus and the Fed’s continuous support to keep interest rates low have added to investors’ hope for a faster economic recovery in the United States. This is making funds like IYM an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 27.97, which gives cues of further rally.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
iShares U.S. Basic Materials ETF (IYM): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report