Chemical ETFs Not so Toxic

“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.