With certain sectors seeing upticks of late following a sustained rebound in commodity prices (for now), investors looking to gain exposure to such sectors will need to assess all the options available in the broader commodities sector filled with a range of opportunities.
The materials sector specifically has performed very well in recent months, posting strength bolstered by expectations of growth in infrastructure spending in the global market, and particularly the U.S. market following the Trump election victory last fall.Individual companies within the materials sector have posted strong gains of late, following robust near and medium term expectations relating to continued construction growth related to a strong North American housing market and aforementioned expected growth in infrastructure spending, both public and private.
One such exchange traded fund (ETF) which provides investors exposure to some of the largest and best materials companies out there is the SPDR Select Sector Materials ETF (NYSE:XLB). This ETF is a well-diversified option for investors looking for said exposure, with a broad subset of companies operating in different materials-related niches, posed for continued appreciation as economic growth continues to motor along at steady rates.This ETF is a decent option as well for investors looking for a sector ETF which tracks the broader equities market as well, as the materials sector is one which has a relatively high correlation to the S&P 500 and other indices, reflective of broader general economic conditions.
Invest wisely, my friends.