Demand Strong as Steel for ETF SLX

July 31, 2007 at 1:00 pm by Tom Lydon

One of the best performing exchange traded funds (ETFs) so far this year is Market Vectors Steel (SLX), which is up 43.5% year-to-date. Jesse Emspak for Investor’s Business Daily says Rio Tinto RTP’s increase from 212.49 on the first of the year to 303.68 last Tuesday gave SLX a recent big boost. Rio Tinto RTP makes up 13.55% of its holdings. The Brazilian producer Companhia Vale Del Rio Doce RIO is 13.41% of SLX’s holdings and has shown large gains as well. SLX’s success also can be attributed to emerging economies’ need for steel to build infrastructure, which boosts the profits and share prices for the producers. SLX recently dropped 8% off its most recent high but remains above its long-term trend line.