In this article, we discuss the 5 best materials ETFs. If you want to read our discussion on the materials sector, you can go to the 10 Best Materials ETFs.
5. Sprott Gold Miners ETF (NYSEARCA:SGDM)
5-Year Price Performance: 59.4%
Total Net Assets as of September 15, 2023: $234.28 million
Expense Ratio: 0.50%
Number of Holdings: 31
Sprott Gold Miners ETF (NYSEARCA:SGDM), launched in July 2014, invests in gold and precious metals mining companies. The fund seeks investment results that mimic the performance of the Solactive Gold Miners Custom Factors Index. The ETF has 75.1% of its holdings invested in companies that are domiciled in Canada. Sprott Gold Miners ETF (NYSEARCA:SGDM) pays out dividends on an annual basis and offers a dividend yield of 1.4%.
4. iShares MSCI Global Gold Miners ETF (NYSEARCA:RING)
5-Year Price Performance: 59.5%
Total Net Assets as of September 15, 2023: $386.22 million
Expense Ratio: 0.39%
Number of Holdings: 37
iShares MSCI Global Gold Miners ETF (NYSEARCA:RING) aims to track the investment results of the MSCI ACWI Select Gold Miners Investable Market Index, which is designed to measure the performance of gold mining companies globally. The fund is 100% allocated to the basic materials sector. The top 10 holdings of the ETF account for 72.4% of its total assets. Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM) are the top three holdings of the ETF, with a combined weight of 43.8%.
3. VanEck Gold Miners ETF (NYSEARCA:GDX)
5-Year Price Performance: 59.7%
Total Net Assets as of September 15, 2023: $11.89 billion
Expense Ratio: 0.51%
Number of Holdings: 57
VanEck Gold Miners ETF (NYSEARCA:GDX) seeks to track the overall performance of companies involved in the gold mining industry. It replicates the MVIS Global Gold Miners Index. The fund, launched in May 2006, is the oldest ETF on our list and happens to be one of the most active ETFs, with an average daily trading volume of 18.08 million shares. VanEck Gold Miners ETF (NYSEARCA:GDX) claims to provide exposure to industry leaders as its holdings include some of the biggest gold mining companies.
2. Global X Copper Miners ETF (NYSEARCA:COPX)
5-Year Price Performance: 77.4%
Total Net Assets as of September 15, 2023: $1.56 billion
Expense Ratio: 0.65%
Number of Holdings: 38
Global X Copper Miners ETF (NYSEARCA:COPX) seeks to provide investment results that closely track the performance of the Solactive Global Copper Miners Total Return Index. The top holdings of the ETF include First Quantum Minerals Ltd. (FM.TO), Southern Copper Corporation (NYSE:SCCO), and Lundin Mining Corporation (LUN.TO). Together, these holdings represent 16.6% of the ETF’s total assets. The ETF pays out a dividend on a semi-annual basis and has a distribution yield of nearly 2.4%.
1. Global X Lithium & Battery Tech ETF (NYSEARCA:LIT)
5-Year Price Performance: 79.8%
Total Net Assets as of September 15, 2023: $2.85 billion
Expense Ratio: 0.75%
Number of Holdings: 40
Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) seeks to replicate the performance of the Solactive Global Lithium Index. The ETF allocates 40.3% of its assets to the basic materials sector and 27.1% to the consumer discretionary sector. In terms of geographic exposure, the ETF has allocated 32.3% of its assets to China and 28.4% to the US. Additionally, the top 10 holdings within Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) account for 55.3% of the portfolio. The ETF’s portfolio is tilted towards chemical companies like Albemarle Corporation (NYSE:ALB) rather than pure-play lithium miners.
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