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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 mainly by strong, well-positioned holdings like Newmont Mining, which combines robust profitability, efficient operations, and a supportive technical outlook, and Steel Dynamics, which adds stable financial performance and strong price momentum. Other contributors such as Nucor and Fastenal also support the fund with healthy fundamentals and growth initiatives, though some holdings like Air Products and Albemarle face profitability, cash flow, and valuation challenges that slightly weigh on the ETF’s appeal. The main risk factor is its concentration in basic materials companies, which can be sensitive to economic cycles and commodity price swings.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating positive momentum in its holdings.
Leading Materials Companies in Top Holdings
Several of the largest positions, including major chemicals, metals, and mining companies, have delivered solid year-to-date results that support the fund’s overall performance.
Focused Exposure with Some Industry Spread
While centered on basic materials, the fund also holds industrial, consumer cyclical, and technology names, adding a bit of diversification within its niche focus.
Negative Factors
High Concentration in Top Holding
The largest stock makes up a sizable share of the portfolio, so a setback in that company could noticeably affect the ETF.
Heavy Sector Concentration
With most assets in the materials sector, the fund is highly sensitive to swings in commodity prices and the economic cycle.
Limited Geographic Diversification
Almost all of the ETF’s exposure is to U.S. companies, offering little benefit from growth or diversification in other regions.

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, focusing on U.S. companies that produce essential raw materials like chemicals, metals, and related products. Well-known holdings include Linde and Newmont Mining. Investors might consider this ETF if they want to diversify into the materials sector, which can benefit when the economy is growing and demand for construction, manufacturing, and industrial goods rises. However, this fund is heavily tied to the basic materials sector, so its price can swing with commodity prices and overall 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

IYM is leaning heavily on a few big U.S. materials names, with Linde acting as the steady anchor while copper giant Freeport-McMoRan and steel makers like Nucor and Steel Dynamics provide the real spark, recently rising and giving the fund a cyclical tailwind. Gold exposure through Newmont and Anglogold has been more of a mixed bag, swinging between strength and softness. Ecolab and Air Products look steadier but not especially exciting. Overall, this is a U.S.-centric bet on basic materials, metals, and mining rather than a broad, tech-driven market play.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde19.97%$329.28M$236.47B14.01%
66
Neutral
Newmont Mining10.81%$178.34M$128.85B114.68%
81
Outperform
Freeport-McMoRan7.49%$123.44M$87.74B62.65%
67
Neutral
Ecolab5.87%$96.80M$76.11B12.07%
66
Neutral
Air Products and Chemicals4.72%$77.80M$67.19B12.22%
46
Neutral
Nucor4.16%$68.65M$48.81B84.44%
74
Outperform
Fastenal Company3.85%$63.49M$51.31B13.04%
72
Outperform
Anglogold Ashanti PLC3.66%$60.41M$50.15B138.19%
73
Outperform
Steel Dynamics3.28%$54.01M$32.82B75.89%
76
Outperform
Albemarle2.57%$42.39M$22.19B240.78%
58
Neutral

IYM Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
179.40
Positive
100DMA
172.55
Positive
200DMA
158.79
Positive
Market Momentum
MACD
1.08
Positive
RSI
50.15
Neutral
STOCH
22.94
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 182.99, equal to the 50-day MA of 179.40, and equal to the 200-day MA of 158.79, indicating a neutral trend. The MACD of 1.08 indicates Positive momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.94 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
$1.53B0.38%
68
Neutral
$9.97B0.09%
72
Outperform
$9.91B0.69%
72
Outperform
$7.41B0.08%
68
Neutral
$5.24B0.35%
63
Neutral
$3.10B0.09%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IYM
iShares U.S. Basic Materials ETF
181.01
51.67
39.95%
VDE
Vanguard Energy 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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