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IYM - ETF AI Analysis
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iShares U.S. Basic Materials ETF (IYM)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Top Holdings
Several top holdings, like AngloGold Ashanti and Steel Dynamics, have delivered strong year-to-date performance, supporting the ETF's overall returns.
Sector Focus on Materials
The ETF's heavy exposure to the materials sector benefits from demand in industries like mining and chemicals, which can perform well during economic growth.
Reasonable Expense Ratio
The fund's expense ratio is competitive compared to many sector-focused ETFs, helping investors retain more of their returns.
Negative Factors
High Concentration in Top Holdings
The ETF's largest position, Linde, makes up over 20% of the portfolio, increasing risk if this stock underperforms.
Weak Recent Performance
The ETF has experienced negative returns over the past one and three months, indicating short-term struggles.
Limited Geographic Diversification
With nearly all assets invested in U.S. companies, the fund lacks exposure to international markets, reducing protection against global opportunities or risks.
IYM vs. SPDR S&P 500 ETF (SPY)
AUM914.12M
RegionNorth America
Expense Ratio0.38%
Beta0.83
IssueriShares
Inception DateJun 12, 2000
Dividend Yield1.37%
Asset ClassEquity
Index TrackedRussell 1000 Basic Materials RIC 22.5/45 Capped Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume269,257
30 Day Avg. Volume120,345
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
177.00Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering38
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
IYM Summary
The iShares U.S. Basic Materials ETF (IYM) is an investment fund that focuses on companies in the U.S. basic materials sector, such as chemicals, metals, and forestry products. It tracks the Russell 1000 Basic Materials Index and includes well-known companies like Linde and Newmont Mining. This ETF could be a good choice for investors looking to diversify their portfolio or benefit from the steady demand for raw materials, which are essential to many industries. However, new investors should be aware that the ETF’s performance can fluctuate with changes in the materials sector, which is influenced by global economic conditions.
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
The iShares U.S. Basic Materials ETF (IYM) leans heavily into the materials sector, with names like Linde and Newmont Mining shaping its performance. Linde has been steady but faces bearish momentum and valuation concerns, while Newmont Mining is rising on strong profitability and efficient operations. Freeport-McMoRan adds a boost with positive technical momentum, though operational risks linger. On the downside, Air Products and Chemicals is dragging the fund with bearish signals and financial challenges. Overall, the ETF’s U.S.-focused portfolio is a bet on raw materials, with mining stocks leading the charge.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 19.07% | $175.11M | $205.45B | 1.74% | 66 Neutral | |
| Newmont Mining | 11.74% | $107.82M | $124.57B | 174.21% | 81 Outperform | |
| Freeport-McMoRan | 8.17% | $75.00M | $86.66B | 49.79% | 67 Neutral | |
| Ecolab | 6.61% | $60.70M | $78.07B | 16.13% | 66 Neutral | |
| Air Products and Chemicals | 4.40% | $40.42M | $59.49B | -14.77% | 46 Neutral | |
| Anglogold Ashanti PLC | 4.05% | $37.22M | $50.24B | 268.96% | 73 Outperform | |
| Fastenal Company | 3.88% | $35.64M | $48.70B | 16.44% | 72 Outperform | |
| Nucor | 3.41% | $31.33M | $39.43B | 41.69% | 74 Outperform | |
| International Paper Co | 2.66% | $24.42M | $22.62B | -22.40% | 49 Neutral | |
| Steel Dynamics | 2.58% | $23.70M | $24.94B | 40.09% | 76 Outperform |
IYM Technical Analysis
Positive
―
Price Trends
151.16
Positive
149.12
Positive
142.44
Positive
Market Momentum
5.01
Negative
79.52
Negative
97.87
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 159.64, equal to the 50-day MA of 151.16, and equal to the 200-day MA of 142.44, indicating a bullish trend. The MACD of 5.01 indicates Negative momentum. The RSI at 79.52 is Negative, neither overbought nor oversold. The STOCH value of 97.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IYM.
IYM Peer Comparison
Comparison Results
Performance Comparison
IYM
iShares U.S. Basic Materials ETF
170.31
35.03
25.89%
FXH
First Trust Health Care AlphaDEX Fund
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―
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IETC
iShares Evolved US Technology ETF
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FMAT
Fidelity MSCI Materials Index ETF
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FXZ
First Trust Materials AlphaDEX Fund
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RSPM
Invesco S&P 500 Equal Weight Materials ETF
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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.
Disclaimer
This 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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