Materials ETFs are exchange-traded funds that invest in companies involved in producing and distributing raw materials such as precious metals, chemicals, and forest products. These ETFs aim to provide exposure to the performance of the materials sector and provide diversification to an investment portfolio. The holdings in these ETFs may include mining companies, commodity producers, and manufacturers of basic materials. Investing in materials ETFs can be a way to gain exposure to the global economy's performance, as the demand for raw materials can be tied to economic growth.

Materials

NYSEArca

NasdaqGM

PSCM

iShares MSCI Global Metals & Mining Producers ETF seeks to track the MSCI ACWI Select Metals & Mining Producers ex Gold and Silver Investable Market Index, providing global exposure to companies engaged in producing metals and industrial materials while excluding gold and silver producers.

Cboe US

PICK

The Sprott Critical Materials ETF seeks to track the Nasdaq Sprott Critical Materials Index, providing global equity exposure to companies involved in critical materials and mining industries tied to rising energy demand, infrastructure investment, and the transition to a less carbon-intensive economy.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
SLX	VanEck Vectors Steel ETF	2.39	0.53	0.62	79
PSCM	Invesco S&P SmallCap Materials ETF	2.33	0.44	0.51	81
PICK	iShares MSCI Global Metals & Mining Producers ETF	2.16	0.36	0.60	73
FXZ	First Trust Materials AlphaDEX Fund	2.06	0.37	0.48	74
SETM	Sprott Critical Materials ETF	1.91	—	—	64

Top Materials ETFs by Sharpe Ratio

Top Materials ETFs by Sharpe Ratio