There is more to XME’s story. The ETF obviously is not focused on precious metals miners, but with the Market Vectors Gold Miners ETF (NYSEArca: GDX) and the Global X Silvers Miners ETF (NYSEArca: SIL) up an average of 15.7% over the past 90 days, it is a good thing that 14.6% of XME’s weight is allocated to gold and silver miners. [Miners ETF Nears a Rally]
XME’s tenth-largest holding is former Dow component Alcoa (NYSE: AA). The largest U.S. aluminum producer is loving life out of the blue chip index, having surged almost 54% this year. Like U.S. Steel, Alcoa is in a transformation process that includes cost-cutting. The former Dow member is focusing more on margin-boosting processed products, which has bolstered the shares this year.
Steelmakers will continue to be the primary driver’s of XME’s fortunes. Over the past three years, the ETF’s correlation to AK Steel (NYSE: AKS) and U.S. Steel, the fund’s two largest holdings, is nearly 0.69, according to State Street data. XME has added almost $56 million in new assets this year, or more than 10% of its current AUM tally.
SPDR Metals & Mining ETF
