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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, well-established holdings like Newmont Mining, which shows robust profitability, efficient operations, and a supportive technical outlook, and other financially sound names such as Fastenal, Nucor, and Steel Dynamics. However, the fund is heavily concentrated in Linde, whose bearish technical signals, overvaluation concerns, and macroeconomic challenges in Europe, along with weaker financial performance at Air Products and Chemicals, weigh on the overall rating. The main risk factor is this concentration in a single large holding within the basic materials sector, which can amplify the impact of any company- or region-specific setbacks.
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)

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 heavily tilted toward U.S. basic materials, with Linde acting as the anchor: its longer-term gains have helped, even if the stock has cooled recently. Air Products and Fastenal are also steady contributors, adding some industrial flavor to this materials-heavy mix. On the weaker side, gold and mining names like Newmont and AngloGold have been lagging, putting a bit of a drag on returns. CF Industries is a rare bright spot, rising sharply and showing how fertilizer and chemicals can still power this U.S.-focused sector story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde20.64%$248.76M$232.90B14.76%
66
Neutral
Newmont Mining10.23%$123.25M$124.07B158.15%
81
Outperform
Freeport-McMoRan7.47%$90.08M$88.22B110.57%
67
Neutral
Ecolab6.16%$74.22M$74.52B11.15%
66
Neutral
Air Products and Chemicals4.90%$59.08M$65.36B11.42%
46
Neutral
Fastenal Company4.11%$49.53M$53.17B24.43%
72
Outperform
Anglogold Ashanti PLC3.58%$43.10M$51.10B201.70%
73
Outperform
Nucor3.40%$40.99M$39.28B67.08%
74
Outperform
Steel Dynamics2.68%$32.25M$26.11B65.00%
76
Outperform
Cf Industries Holdings2.50%$30.09M$19.97B77.87%
72
Outperform

IYM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
177.13
Positive
100DMA
164.88
Positive
200DMA
154.47
Positive
Market Momentum
MACD
-0.54
Negative
RSI
57.92
Neutral
STOCH
93.10
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 172.98, equal to the 50-day MA of 177.13, and equal to the 200-day MA of 154.47, indicating a bullish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 93.10 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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.39B0.38%
68
Neutral
$8.78B0.09%
67
Neutral
$8.60B0.69%
72
Outperform
$6.69B0.08%
67
Neutral
$4.52B0.35%
63
Neutral
$2.97B0.09%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IYM
iShares U.S. Basic Materials ETF
178.79
60.73
51.44%
VPU
Vanguard Utilities ETF
AIRR
First Trust RBA American Industrial Renaissance 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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