Rio Tinto (NYSE: RIO) and Brazil’s Vale (NYSE: VALE) are two of the world’s largest iron ore makers and those stocks combine for 25.5% of SLX’s weight.
That could work in the ETF’s favor. Last week, the World Bank said it expects higher iron ore prices this year and in 2014 due to improving global manufacturing. The World Bank expects iron ore prices to average $134 a ton this year and $135 per ton in 2014 compared with prior forecasts of $120 per ton for 2013 and $125 a ton for 2014.
Market Vectors Steel ETF
ETF Trends editorial team contributed to this post.