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IYM - ETF AI Analysis

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IYM

iShares U.S. Basic Materials ETF (IYM)

Rating:68Neutral
Price Target:
IYM, the iShares U.S. Basic Materials ETF, has a solid overall rating driven largely by strong, profitable holdings like Newmont Mining and Anglogold Ashanti, which show healthy financial performance and supportive technical trends. However, the fund is heavily concentrated in Linde, whose bearish momentum, overvaluation concerns, and European macroeconomic challenges, along with weaker names like Air Products and Chemicals facing profitability and cash flow issues, modestly weigh on the ETF’s appeal. The main risk factor is this concentration in a single sector—basic materials—which can make the fund more sensitive to commodity cycles and industrial demand swings.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, showing solid momentum in the basic materials sector.
Leading Holdings with Strong Returns
Several of the largest positions, including Linde, Freeport-McMoRan, Air Products and Chemicals, Nucor, Carpenter Technology, and Steel Dynamics, have shown strong performance, helping drive the fund’s overall results.
Focused Exposure to U.S. Materials
The fund is heavily invested in U.S. materials companies, giving targeted exposure to a key economic sector while still including some industrial and consumer cyclical names for added variety.
Negative Factors
High Concentration in Top Holding
Linde alone makes up a large share of the portfolio, which increases the fund’s sensitivity to the performance of a single company.
Underperforming Gold-Related Holdings
Newmont Mining and Anglogold Ashanti have shown weak performance this year, which can drag on the ETF’s returns if the trend continues.
Single-Country and Sector Concentration
Almost all assets are in U.S. stocks and heavily tilted toward the materials sector, which can make the fund more vulnerable to downturns in that country or industry.

IYM vs. SPDR S&P 500 ETF (SPY)

IYM Summary

The iShares U.S. Basic Materials ETF (IYM) tracks the Russell 1000 Basic Materials Index and focuses on U.S. companies that produce essential raw materials like chemicals, metals, and forestry products. Big names in the fund include Linde and Newmont Mining. Investors might consider IYM if they want to diversify into the materials sector and potentially benefit when demand for construction, manufacturing, and industrial goods rises. However, this ETF can be volatile because it is heavily tied to the basic materials sector, which can go up and down with commodity prices and the overall economy.
How much will it cost me?The iShares U.S. Basic Materials ETF (IYM) has an expense ratio of 0.38%, meaning you’ll pay $3.80 per year for every $1,000 invested. This expense ratio is slightly higher than average for ETFs because it is focused on a specific sector and requires more active management compared to broad-market index funds.
What would affect this ETF?The iShares U.S. Basic Materials ETF (IYM) could benefit from increased global demand for raw materials, driven by infrastructure projects and industrial growth, as well as its potential to act as a hedge against inflation. However, it may face challenges from rising interest rates, which can increase borrowing costs for companies in the sector, and potential regulatory changes or environmental concerns affecting mining and chemical production. Its heavy exposure to the U.S. market and reliance on top holdings like Linde and Newmont Mining also make it sensitive to domestic economic conditions.

IYM Top 10 Holdings

IYM is very much a U.S. materials story, with Linde sitting in the driver’s seat but lately losing a bit of steam, which can dampen overall returns given its outsized weight. The real spark has come from copper and steel names like Freeport-McMoRan, Nucor, Steel Dynamics, and especially Carpenter Technology, all riding strong momentum as industrial demand stays firm. Newmont and AngloGold, tied to gold, have been more mixed and occasionally lagging, adding some choppiness. Overall, the fund is concentrated in U.S. chemicals, metals, and miners rather than tech or global giants.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde21.37%$242.28M$235.31B7.39%
66
Neutral
Newmont Mining9.31%$105.52M$102.22B53.99%
81
Outperform
Freeport-McMoRan8.38%$94.98M$93.44B42.44%
67
Neutral
Ecolab6.06%$68.65M$75.11B-2.48%
66
Neutral
Air Products and Chemicals4.96%$56.20M$66.14B-0.98%
46
Neutral
Fastenal Company4.30%$48.73M$52.02B-3.71%
72
Outperform
Nucor4.21%$47.73M$53.72B70.51%
74
Outperform
Anglogold Ashanti PLC3.33%$37.80M$40.99B55.22%
73
Outperform
Carpenter Technology2.98%$33.81M$29.20B120.37%
75
Outperform
Steel Dynamics2.97%$33.67M$34.41B89.68%
76
Outperform

IYM Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
181.25
Negative
100DMA
179.94
Negative
200DMA
168.68
Positive
Market Momentum
MACD
-1.66
Negative
RSI
47.13
Neutral
STOCH
55.41
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 177.84, equal to the 50-day MA of 181.25, and equal to the 200-day MA of 168.68, indicating a neutral trend. The MACD of -1.66 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 55.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IYM.

IYM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.18B0.38%
68
Neutral
$10.00B0.09%
72
Outperform
$8.65B0.09%
67
Neutral
$8.32B0.08%
67
Neutral
$3.91B0.35%
63
Neutral
$2.92B0.09%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IYM
iShares U.S. Basic Materials ETF
177.23
31.18
21.35%
VDE
Vanguard Energy ETF
VPU
Vanguard Utilities ETF
XLB
Materials Select Sector SPDR Fund
XME
SPDR S&P Metals & Mining ETF
VAW
Vanguard Materials ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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