ETF 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.