ETF Trends
ETF Trends

The Market Vectors Steel ETF (NYSEArca: SLX) is higher by 2% on volume that is nearly double the daily average after Goldman Sachs upgraded its view on the steel sector to neutral from cautious.

“…we see the sector heading to a sustainable recovery over the coming years and risks associated with oversupply appear to be largely priced in. Although volatility associated with this deeply cyclical sector will remain a norm, we believe that investors should start to look beyond near-term headwinds,” according to a Goldman not posted by Barron’s.

The bank upgraded U.S. Steel (NYSE: X) and AK Steel (NYSE: AKS) to buy from sell while boosting Steel Dynamics (NasdaqGM: STLD) from buy to neutral. Goldman lowered its rating on Reliance Steel & Aluminum (NYSE: RS), calling the stock fully valued, Barron’s reported.

Steel Dynamics, U.S. Steel and AK Steel combine for less than 9% of SLX’s weight. Reliance Steel is 4.3% of the ETF’s weight.

While the Goldman steel sector upgrade has SLX trading at its highest levels since February, the upgrades come on the heels of a 19% gain for SLX over the past 90 days. [Steel ETF’s Stellar Stealth Run]

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