Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Market Vectors Steel ETF (NYSE: SLX ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Market Vectors Steel and see what CAPS investors are saying about the ETF right now.
Market Vectors Steel facts
| Inception |
October 2006 |
| Total Assets |
$188 million |
| Investment Approach |
Seeks to replicate the NYSE Arca Steel Index, which includes companies involved in the production of steel products or mining and processing of iron ore. |
| Expense Ratio |
0.55% |
| 1-Year / 3-Year / 5-Year Annual Returns |
(27.5%) / 24.0% / 2.4% |
| Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight |
Rio Tinto (NYSE: RIO ) (12.4%)
Vale (NYSE: VALE ) (11.7%)
ArcelorMittal (NYSE: MT ) (7.9%) |
| Dividend Yield |
2.0% |
| Alternatives |
PowerShares Global Steel (Nasdaq: PSTL )
SPDR S&P Metals & Mining (NYSE: XME ) |
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 98% of the 267 members who have rated Market Vectors Steel believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star ZachGruver, who is ranked in the top 5% of our community, and leohath.
Having gotten on board a few years ago, ZachGruver succinctly summed up the bull case: "As global expansion continues, the demand for steel will continue to be strong. ... [The ETF] provides great exposure to steel but not as much risk as putting all of your capital into a single steel producer."
Market Vectors Steel even sports an annual turnover ratio of just 13%. That's much lower than that of alternatives like PowerShares Global Steel (46%) and SPDR S&P Metals & Mining (68%).
CAPS member leohath elaborates on the opportunity:
[S]ince steel is subject to intense price competition and market volatility, along with governmental interference, tremendous returns are not something you should expect to experience all the time.
[Market Vectors Steel] can be looked at as another way to participate in emerging markets like China and Vietnam, where strong demand for steel is led by growth in autos, construction, and consumer durables.
For most investors, a more diverse approach to commodities is probably a better approach, but for those who can afford concentration and the risk that goes with it, this fund could make an interesting, but small, component of your portfolio.
What do you think about Market Vectors Steel, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Market Vectors Steel? Add it to your watchlist.
RSS Headlines
Fool UK