Other materials sector ETFs that have received Underweight ratings by S&P Capital are the First Trust Materials AlphaDEX Fund (NYSEArca: FXZ) and the Guggenheim S&P 500 Equal-Weight Materials ETF (NYSEArca: RTM).
As the sovereign debt crisis in Europe continues to dominate the news, the outlook for continued growth in emerging economies is bleak. This will drag on the materials sector for the time being, as growth is at a snail’s pace.
Materials Select Sector SPDR ETF
Tisha Guerrero contributed to this article.