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SLX - ETF AI Analysis
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VanEck Steel ETF (SLX)
Rating:70Outperform
Price Target:―
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating strong momentum in the steel sector.
Focused Sector Exposure
The ETF’s heavy allocation to materials provides targeted exposure to a sector benefiting from infrastructure and industrial demand.
Reasonable Expense Ratio
The fund’s expense ratio is competitive compared to other niche ETFs, helping investors retain more of their returns.
Negative Factors
High Geographic Concentration
With nearly all assets invested in U.S. companies, the ETF lacks diversification across global markets.
Underperforming Holding
One of the top holdings, Tenaris SA, has lagged in performance, which could drag on overall returns.
Sector Over-Concentration
The ETF is heavily weighted in the materials sector, making it vulnerable to downturns in commodity prices or steel demand.
SLX vs. SPDR S&P 500 ETF (SPY)
AUM147.74M
RegionGlobal
Expense Ratio0.56%
Beta1.08
IssuerVanEck
Inception DateOct 10, 2006
Dividend Yield2.54%
Asset ClassEquity
Index TrackedNYSE Arca Steel (TR)
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume42,751
30 Day Avg. Volume36,754
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
86.78Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SLX Summary
The VanEck Steel ETF (SLX) is an investment fund that focuses on companies involved in steel production, an essential industry for construction, manufacturing, and infrastructure. It tracks the NYSE Arca Steel Index and includes well-known companies like Rio Tinto and Vale SA. This ETF is a good option for investors who want to diversify their portfolio with exposure to the materials sector and benefit from the global demand for steel, especially during economic growth or infrastructure spending. However, new investors should know that the steel industry is cyclical, meaning its performance can rise and fall with changes in the economy.
How much will it cost me?The VanEck Steel ETF (SLX) has an expense ratio of 0.56%, meaning you’ll pay $5.60 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it is actively managed to focus on a specific niche—the steel production industry—rather than tracking a broad market index.
What would affect this ETF?The VanEck Steel ETF (SLX) could benefit from increased global infrastructure spending and economic growth, which drive demand for steel in construction and manufacturing. However, it may face challenges from rising interest rates, which can slow economic activity, or stricter environmental regulations impacting steel production costs. Its global exposure and reliance on major steel producers like Rio Tinto and Vale make it sensitive to commodity price fluctuations and geopolitical developments.
SLX Top 10 Holdings
The VanEck Steel ETF (SLX) is riding the wave of strong performers like Carpenter Technology and ATI, both of which are benefiting from robust demand and strategic growth in key sectors, though their high valuations suggest some caution. ArcelorMittal and Vale are also contributing positively, with solid financials and strategic improvements driving their momentum. However, POSCO is lagging, with mixed signals and financial challenges holding it back. The fund is heavily concentrated in the global steel industry, making it a cyclical play tied to economic growth and infrastructure trends, with a clear focus on Materials and Industrials.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Rio Tinto | 10.71% | $14.92M | $126.16B | 17.63% | 80 Outperform | |
| Vale SA | 9.37% | $13.06M | $55.11B | 37.82% | 79 Outperform | |
| Nucor | 5.68% | $7.92M | $36.49B | 11.84% | 74 Outperform | |
| ArcelorMittal | 5.54% | $7.71M | $31.70B | 67.10% | 71 Outperform | |
| Steel Dynamics | 5.35% | $7.45M | $24.13B | 20.69% | 78 Outperform | |
| Warrior Met Coal | 5.12% | $7.13M | $4.29B | 28.14% | 69 Neutral | |
| Tenaris SA | 5.10% | $7.10M | $22.03B | 8.23% | 75 Outperform | |
| Carpenter Technology | 5.06% | $7.05M | $15.30B | 58.70% | 74 Outperform | |
| ATI | 5.02% | $6.99M | $13.64B | 74.47% | 79 Outperform | |
| Gerdau SA | 4.62% | $6.43M | $6.62B | 3.88% | 67 Neutral |
SLX Technical Analysis
Positive
―
Price Trends
77.23
Positive
73.89
Positive
68.37
Positive
Market Momentum
1.47
Negative
60.59
Neutral
87.03
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SLX, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 79.41, equal to the 50-day MA of 77.23, and equal to the 200-day MA of 68.37, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 87.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLX.
SLX Peer Comparison
Comparison Results
Performance Comparison
SLX
VanEck Steel ETF
81.69
14.46
21.51%
SLVP
iShares MSCI Global Silver Miners ETF
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SGDM
Sprott Gold Miners ETF
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SGDJ
Sprott Junior Gold Miners ETF
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MXI
iShares Global Materials ETF
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GOAU
U.S. Global GO GOLD and Precious Metal Miners 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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