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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 Recent Performance
The ETF has shown strong gains over the past month, three months, and year to date, indicating solid recent momentum.
Leading Materials Companies in Top Holdings
Several of the largest positions, including major metals and gold producers, have delivered strong year-to-date results, helping drive the fund’s returns.
Focused Exposure to U.S. Materials Sector
The fund’s heavy tilt toward U.S. basic materials companies offers targeted exposure for investors who want to benefit from strength in this specific part of the market.
Negative Factors
High Concentration in Top Holdings
A small number of stocks make up a large share of the portfolio, which increases the impact that any one company’s performance can have on the ETF.
Sector Concentration Risk
With most assets in the materials sector and only small allocations elsewhere, the fund is highly sensitive to downturns in basic materials industries.
Limited International Diversification
The ETF is almost entirely invested in U.S. companies, offering little geographic diversification if the U.S. market or economy weakens.
IYM vs. SPDR S&P 500 ETF (SPY)
AUM1.29B
RegionNorth America
Expense Ratio0.38%
Beta0.82
IssueriShares
Inception DateJun 12, 2000
Dividend Yield1.26%
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. Volume178,325
30 Day Avg. Volume133,504
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
190.16Price 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) tracks the Russell 1000 Basic Materials Index and focuses on U.S. companies that produce key raw materials like chemicals, metals, and related products. It holds well-known names such as Linde and Newmont Mining, giving investors a simple way to invest in the building blocks of the economy. Someone might consider IYM for diversification and potential growth if demand for materials rises with economic activity or inflation. A key risk is that it is heavily tied to the basic materials sector, so its price can swing with commodity cycles and economic slowdowns.
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 a heavy tilt toward chemicals and metals. Linde sits in the driver’s seat but has been more steady than exciting lately, so it’s not giving the fund much extra lift. The real spark is coming from gold and copper names like Newmont, Freeport-McMoRan, Anglogold Ashanti, and Royal Gold, which have been rising and helping power recent gains. On the flip side, Air Products and Steel Dynamics look a bit tired, softening the impact of the fund’s stronger winners.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 18.65% | $244.79M | $218.30B | 1.40% | 66 Neutral | |
| Newmont Mining | 11.79% | $154.77M | $135.97B | 160.94% | 81 Outperform | |
| Freeport-McMoRan | 8.21% | $107.73M | $94.00B | 62.75% | 67 Neutral | |
| Ecolab | 6.65% | $87.30M | $85.98B | 14.34% | 66 Neutral | |
| Air Products and Chemicals | 4.46% | $58.62M | $65.27B | -6.99% | 46 Neutral | |
| Anglogold Ashanti PLC | 4.25% | $55.79M | $56.68B | 237.76% | 73 Outperform | |
| Fastenal Company | 3.86% | $50.66M | $53.99B | 25.74% | 72 Outperform | |
| Nucor | 3.49% | $45.86M | $44.49B | 43.43% | 74 Outperform | |
| Steel Dynamics | 2.79% | $36.64M | $30.05B | 54.86% | 76 Outperform | |
| International Paper Co | 2.76% | $36.21M | $25.97B | -11.27% | 49 Neutral |
IYM Technical Analysis
Positive
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Price Trends
162.74
Positive
154.16
Positive
146.95
Positive
Market Momentum
5.08
Negative
72.06
Negative
97.48
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 174.86, equal to the 50-day MA of 162.74, and equal to the 200-day MA of 146.95, indicating a bullish trend. The MACD of 5.08 indicates Negative momentum. The RSI at 72.06 is Negative, neither overbought nor oversold. The STOCH value of 97.48 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
185.03
45.26
32.38%
VDE
Vanguard Energy ETF
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―
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AIRR
First Trust RBA American Industrial Renaissance ETF
―
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XLB
Materials Select Sector SPDR Fund
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―
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XME
SPDR S&P Metals & Mining ETF
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VAW
Vanguard 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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