Exposure to chemicals makers could continue to prove efficacious for materials ETFs.
“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 earlier this month. [Chemicals ETFs not so Toxic]
And there may not be a need to sell XLB at the end of November because the ETF is also the best-performing SPDR in December.
Materials Select Sector SPDR
