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You Might Be Crazy To Buy This ETF Or It Might Really Work

Benzinga.com
0 Comments| October 5, 2015

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The Materials Select Sector SPDR (NYSE: XLB) is down 13.7 percent this year, making it the second-worst performer among the nine sector SPDRs. The Market Vectors-Coal ETF (NYSE: KOL), Market Vectors Gold Miners ETF (NYSE: GDX) and the Market Vectors Steel (ETF) (NYSE: SLX) are lower by 44.5 percent, 21.2 percent and 36.4 percent, respectively.

With those data points in mind, it might seem like a death wish for a trading account to become involved with a metals and mining ETF of any type, let alone one that is heavy on gold miners, coal miners and steel producers.

Mr. Market seems to believe as much, as the SPDR S&P Metals and Mining (ETF) (NYSE: XME) has shed 43.2 percent this year. XME's woes are easily explained. The ETF allocates nearly 48 percent of its weight to steel stocks, and as if that is not bad enough, the fund devotes a combined 17.6 percent of its ...

/www.benzinga.com/trading-ideas/long-ideas/15/10/5885772/you-might-be-crazy-to-buy-this-etf-or-it-might-really-work alt=You Might Be Crazy To Buy This ETF Or It Might Really Work>Full story available on Benzinga.com

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