Materials ETF (IYM) hits new high in 52 weeks

For investors looking for dynamism, iShares US Basic Materials ETF IYM is probably on the radar. The fund just hit a 52-week high and is up 23.4% from its 52-week low of $121.75/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better idea of ​​its direction:

AIM in a nutshell

This product provides exposure to US companies involved in the production of commodities, including metals, chemicals and forest products. It has key interests in specialty chemicals, steel, basic chemicals, copper and gold. The ETF charges 41 basis points of annual fees (see: all Materials ETFs here).

Why the move?

The materials sector has been an area to watch lately, given the ongoing war in Ukraine and rising prices. The tensions have led to fears of supply disruptions in an already tight commodity market, pushing prices higher. Russia is a powerhouse of raw materials and a key supplier of energy, metals and agro. As the prices of various materials have risen, the materials sector has seen solid growth. In addition, a strict policy means solid economic growth, which in turn leads to increased demand for materials.

More wins to come?

Currently, IYM has a Zacks ETF Rank #3 (Hold) with a high-risk outlook, suggesting the outperformance may continue in the coming months. However, many of the spaces that make up this ETF have strong Zacks Industry rankings. So there is certainly promise for those who want to ride this booming ETF a little further.

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iShares US Basic Materials ETF (IYM): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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