“We also see the industry as having significant exposure to more rapidly growing emerging market countries, with the major U.S. diversified chemicals and industrial gas companies having over 25% of their revenues coming from emerging economies in Asia, Latin America, and elsewhere. Finally, we see major petrochemical producers benefiting significantly from having their large U.S. plants exposed to relatively low-cost U.S. shale gas as a feedstock, which gives them a sizable cost advantage over producers in Asia and Europe,” said S&P Capital IQ in the note.

The research firm rates both ETFs marketweight.

Materials Select Sector SPDR


ETF Trends editorial team contributed to this post.