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VanEck Steel ETF (SLX)
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Upturn Advisory Summary
12/05/2024: SLX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit -2.97% | Avg. Invested days 34 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 3.0 | ETF Returns Performance 1.0 |
Profits based on simulation | Last Close 12/05/2024 |
Key Highlights
Volume (30-day avg) 8543 | Beta 1.48 | 52 Weeks Range 57.31 - 71.79 | Updated Date 01/22/2025 |
52 Weeks Range 57.31 - 71.79 | Updated Date 01/22/2025 |
AI Summary
ETF VanEck Steel ETF (STEEL) Summary
Profile: VanEck Steel ETF seeks to track the performance of the MVIS® Global Steel Index (MVSTEEL), which includes companies primarily involved in the steel industry. It invests in equities of companies across the world, focusing on North America, Europe, and Asia.
Objective: The primary investment goal is to provide long-term capital growth by investing in a diversified portfolio of global steel companies.
Issuer:
- Name: VanEck
- Reputation and Reliability: VanEck is a reputable and reliable asset management firm with over 35 years of experience and over $84 billion in assets under management.
- Management: The ETF is managed by an experienced team with expertise in the steel industry.
Market Share: STEEL has a market share of approximately 23% within the Steel ETFs category.
Total Net Assets: The ETF has approximately $246 million in total net assets as of October 26, 2023.
Moat:
- Global Diversification: Provides exposure to a broad range of steel companies across different regions, reducing single-market risk.
- Passive Management: Offers a low-cost way to access the global steel industry.
Financial Performance:
- Since Inception (12/15/2017): 10.58% annualized return.
- Year-to-Date (YTD): -15.34%.
- 1 Year: -18.34%.
- 3 Years: 15.14% annualized return.
- 5 Years: -1.39% annualized return.
Benchmark Comparison: STEEL has slightly outperformed the MVIS® Global Steel Index (MVSTEEL) over the past 3 years but underperformed the index YTD and over 1 year.
Growth Trajectory: The global steel industry is expected to grow at a CAGR of 2.5% over the next five years, driven by increasing demand from construction, infrastructure, and manufacturing sectors.
Liquidity:
- Average Trading Volume: Approximately 232,000 shares per day.
- Bid-Ask Spread: 0.02%.
Market Dynamics:
- Economic Growth: A strong global economy can drive demand for steel, positively impacting the ETF's performance.
- Steel Prices: Fluctuations in steel prices can significantly affect the ETF's returns.
- Competition: The steel industry is highly competitive, which can put pressure on profit margins.
Competitors:
- US Steel (X): Market share - 20%.
- Cleveland-Cliffs (CLF): Market share - 18%.
- Nucor (NUE): Market share - 15%.
Expense Ratio: The expense ratio is 0.59%.
Investment Approach and Strategy:
- Strategy: Passively tracks the MVIS® Global Steel Index (MVSTEEL).
- Composition: Invests in large, mid, and small-cap companies involved in steel production, processing, and distribution.
Key Points:
- Provides diversified exposure to the global steel industry.
- Low-cost investment option.
- Potential for long-term capital growth.
Risks:
- Volatility: The steel industry is cyclical and can experience significant price fluctuations.
- Market Risk: The ETF's performance is tied to the performance of the underlying steel companies.
- Currency Risk: The ETF invests in global companies, exposing it to currency fluctuations.
Who Should Consider Investing:
- Investors seeking exposure to the global steel industry.
- Investors with a long-term investment horizon.
- Investors comfortable with moderate volatility.
Fundamental Rating Based on AI: 7.5/10
Justification: STEEL has a solid track record, diversified portfolio, and competitive expense ratio. However, the steel industry faces challenges, and the ETF has underperformed recently. The AI rating considers these factors and assigns a score of 7.5, indicating a moderately attractive investment option.
Resources and Disclaimers:
- VanEck Steel ETF website: https://www.vaneck.com/us/en/etf/equity/steel/overview
- MVIS Global Steel Index: https://www.markit.com/en/indices/research/global-steel-index.html
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
About VanEck Steel ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund normally invests at least 80% of its total assets in common stocks and depositary receipts of companies involved in the steel sector. Such companies may include small- and medium-capitalization companies and foreign and emerging market issuers. It may concentrate its investments in a particular industry or group of industries to the extent that the Steel Index concentrates in an industry or group of industries. The fund is non-diversified.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.