Markets

Should You Invest in the iShares Global Materials ETF (MXI)?

Looking for broad exposure to the Materials - Broad segment of the U.S. equity market? You should consider the iShares Global Materials ETF (MXI), a passively managed exchange traded fund launched on 09/12/2006.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $401.37 M, making it one of the average sized ETFs attempting to match the performance of the Materials - Broad segment of the U.S. equity market. MXI seeks to match the performance of the S&P Global 1200 Materials Sector Index before fees and expenses.

The S&P Global 1200 Materials Sector Index measures the performance of companies that are part of the materials sector of the economy.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.79%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Dowdupont Inc (DWDP) accounts for about 7.41% of total assets, followed by Basf N (BAS) and Bhp Billiton Ltd (BHP).

The top 10 holdings account for about 32.86% of total assets under management.

Performance and Risk

The ETF has lost about -2.09% and it's up approximately 17.46% so far this year and in the past one year (as of 05/01/2018), respectively. MXI has traded between $58.61 and $75.12 during this last 52-week period.

The ETF has a beta of 1.14 and standard deviation of 17.43% for the trailing three-year period, making it a medium risk choice in the space. With about 124 holdings, it effectively diversifies company-specific risk.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center .

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BHP Billiton Limited (BHP): Free Stock Analysis Report

Basic Energy Services, Inc. (BAS): Free Stock Analysis Report

ISHARS-GL MT (MXI): ETF Research Reports

Dow Chemical Company (The) (DWDP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MXI BHP

Other Topics

Stocks

Latest Markets Videos