May 02, 2007 at 7:46 am by Tom Lydon
Some of the highest returns this year have come from the steel sector and has boosted a small and little known exchange traded fund (ETF). The $70 million Van Eck Market Vectors Steel ETF(SLX) is up 28% for the year. Higher profits at steel companies along with merger-and-acquisition activity is to thank. John Spence for The Wall Street Journal reports the expense ratio for Van Eck’s ETF is 0.55%, and given the type of industry it tracks, can be volatile. Holdings include U.S. stocks and ADRs, such as Vale do Rio Doce, Arcelor Mittal and Posco. The fund has soared due to higher steel prices and increased demand from emerging markets such as China. These countries continue to develop infrastructure as they grow.
Tags: Metals & Mining, Sector ETFs, Steel
Subscribe to Our RSS Feed
