The top-performing exchange traded fund (ETF) year-to-date is Market Vectors Steel (SLX), which is up 39.9%. Steel demand continues to fuel the top holding of this ETF reports Jesse Emspak for Investor’s Business Daily. As of yesterday, Posco’s (PKX) and Companhia Vale do Rio Doce’s (RIO) IBD Relative Strength Ratings were 96 and 97 out of a possible 100, respectively. South Korea’s Posco is Asia’s third largest steel producer. High demand for steel in the second quarter was fueled by shipbuilders and auto companies, specifically those in China and India. Other strong performing stocks that helped increase SLX were AK Steel (AKS) and Arcelor Mittal (MT). Although AKS makes up only 1.8% of the ETF, it’s the best year-to-date performer in it, up 125.0%. Similarly, MT that makes up 14.4% of SLX, was up 54.7% year-to-date.
Although SLX dropped more than 28% from its high at the end of July to its low two weeks ago, the fund is still above its long-term trend line (200-day average).
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