The latest numbers suggest that the economy, manufacturing sector (basic materials) and exchanged traded funds (ETFs) that track them are on a rebound. Trang Ho for Investor’s Business Daily reports that export growth continued for its 55th month in a row, according to the Institute for Supply Management. June was a busy month: It saw seven industries increase in export orders, the fifth straight month of growth for the manufacturing sector and the 68th consecutive month for economy growth.
Some of the booming basic material ETFs include:
- ProShares Ultra Basic Materials (UYM) is up 28% since its launch in February. This fund doubles the returns of the Dow Jones Basic Materials Index.
- iShares Dow Jones U.S. Basic Materials (IYM) is up 23% for the year.
- iShares S&P Global Materials (MXI) rose 30% for the year.
- Materials Select Sector SPDR (XLB) is up 20% for the year.
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.