SLX - ETF AI Analysis

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VanEck Steel ETF (SLX)

Rating:70Outperform

Price Target:―

The VanEck Steel ETF (SLX) has a solid overall rating, reflecting its strong holdings in companies like Rio Tinto and Vale. Rio Tinto contributes positively with its stable financial performance, strong technical indicators, and robust dividend yield, while Vale adds strength through its operational efficiency and attractive valuation. However, weaker holdings like Warrior Met Coal and Commercial Metals Company, which face challenges in profitability and cash flow, slightly weigh down the fund's rating. A key risk for SLX is its concentration in the steel and metals sector, which makes it sensitive to market conditions and commodity price fluctuations.

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)

AUM176.56M

RegionGlobal

Expense Ratio0.56%

Beta1.06

IssuerVanEck

Inception DateOct 10, 2006

Dividend Yield1.45%

Asset ClassEquity

Index TrackedMarketVector Global Steel Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume50,920

30 Day Avg. Volume42,530

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

87.95

Price Target Upside― Downside

Rating ConsensusHold

Number of Analyst Covering32

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 performance from global steel giants like ArcelorMittal and ATI, both benefiting from robust demand and strategic growth initiatives. ATI, in particular, shines with its aerospace and defense exposure, while Warrior Met Coal adds momentum with solid earnings and operational achievements. However, Tenaris SA is lagging, weighed down by mixed technical indicators and tariff challenges. With a clear focus on materials and steel producers, this globally diversified fund is heavily concentrated in cyclical industries, making it a bet on infrastructure growth and economic recovery.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
RIO	Rio Tinto	8.30%	$14.61M	$143.30B	39.33%	80 Outperform
BHP	BHP Group	7.99%	$14.08M	$167.01B	29.49%	73 Outperform
VALE	Vale SA	7.24%	$12.75M	$62.71B	63.42%	79 Outperform
FMG	Fortescue Metals Group Ltd	6.04%	$10.64M	AU$70.22B	26.75%	76 Outperform
NUE	Nucor	5.84%	$10.29M	$39.91B	40.04%	74 Outperform
RIO	Rio Tinto Limited	5.45%	$9.59M	AU$214.43B	36.99%	78 Outperform
MT	ArcelorMittal	4.93%	$8.68M	$36.34B	109.50%	71 Outperform
RS	Reliance Steel	4.60%	$8.10M	$16.94B	12.49%	74 Outperform
PKX	POSCO	4.47%	$7.87M	$17.02B	22.58%	60 Neutral
5401	NIPPON STEEL	4.42%	$7.78M	¥3.56T	7.18%	63 Neutral

SLX Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

82.42

Positive

100DMA

77.55

Positive

200DMA

70.69

Positive

Market Momentum

MACD

2.39

Negative

RSI

70.23

Negative

STOCH

88.13

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 87.15, equal to the 50-day MA of 82.42, and equal to the 200-day MA of 70.69, indicating a bullish trend. The MACD of 2.39 indicates Negative momentum. The RSI at 70.23 is Negative, neither overbought nor oversold. The STOCH value of 88.13 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

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SLX	―	―	$176.56M	0.56%	―
SGDM	―	―	$747.30M	0.50%	―
SGDJ	―	―	$390.84M	0.50%	―
MXI	―	―	$287.69M	0.39%	―
GOAU	―	―	$206.01M	0.60%	―
GBUG	―	―	$173.22M	0.89%	―

Performance Comparison

SLX

VanEck Steel ETF

90.74

30.23

49.96%

SGDM

Sprott Gold Miners ETF

―

SGDJ

Sprott Junior Gold Miners ETF

―

MXI

iShares Global Materials ETF

―

GOAU

U.S. Global GO GOLD and Precious Metal Miners ETF

―

GBUG

Sprott Active Gold & Silver Miners 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.

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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