iShares Global Materials ETF

MXI

Market cap $299M

MXI hits a new 52-week high, up 37% from its low, as strength in commodities and chemicals fuels momentum in materials stocks.

The materials sector appears overvalued by 22% versus 11-year averages, with construction materials the least overvalued and chemicals showing the weakest fundamentals. The iShares Global Materials ETF offers global diversification in the materials sector, with lower company risk and recent overperformance compared to XLB, but it lags long-term. Seven stocks were cheaper than their peers in November.

The materials sector is overvalued by about 10% relative to a historical baseline, but the construction materials industry is still attractive. MXI offers global exposure in the materials sector with a diversified portfolio but has underperformed XLB in historical performance and risk metrics. Four stocks cheaper than their peers in January.

The materials sector as a whole is significantly overvalued, but the construction materials industry has good value and quality scores. Fast facts on MXI, a global alternative to XLB. Five stocks cheaper than their peers in November.

iShares Global Materials ETF has lagged behind S&P 500 and top peers in performance. MXI offers global exposure to industrial and natural resources sectors. MXI has decent dividend yield, but lacks significant attraction points for investment.

Commodities show signs of momentum as inflation picks up, making the Materials sector a good investment opportunity. The iShares Global Materials ETF offers access to a diversified portfolio of companies in the materials sector. The MXI ETF provides global exposure, potential growth, but also comes with sector-specific risk, geopolitical risk, and market volatility.