ETF Spotlight: SPDR S&P Metals & Mining (XME)

January 6th at 3:00pm by Tom Lydon

ETF SpotlightETF Spotlight on SPDR S&P Metals & Mining (NYSEArca: XME), part of a weekly series.

Assets: $782 million

Objective: Tracks the S&P Metals & Mining Select Industry Index.

Holdings: Companies involved in the production and mining of metals, including Alcoa (NYSE: AA), Arch Coal (NYSE: ACI) and Massey Energy (NYSE: MEE). The fund is weighted 74% in materials and 26% in energy.

What You Should Know

  • Has 25 holdings
  • XME comes with a 0.35% expense ratio
  • It’s an equity-based commodity ETF, so there are no futures contracts or physical holdings
  • Hard assets are a great option to diversify portfolios, yield competitive returns, hedge against inflation, give exposure to key global economic sectors, and complements other alternative investments [Mining ETFs: Time to shine?]

The Latest News

  • XME is up 17.9% in the last month
  • Metals and mining encompasses extraction, as well as primary and secondary processing of metals and minerals, reports Zacks
  • The auto and construction industries have typically been the biggest drivers of metal consumption, accounting for at least 50% of total demand [Benefits of hard assets.]
  • Other industries utilizing metal include energy, electrical equipment, agriculture and industrial machinery [Metal investing opportunities.]

For more stories on metals and mining, visit our metals and mining category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Tickers

XME