The Bullish Bears break down a list of the largest basic materials stocks and ETF list. Basic materials stocks produce raw materials used in construction, manufacturing, and other industries. These materials can include metals, chemicals, and forest products. The sector is sensitive to economic cycles and changes in commodity prices. The sector tends to perform well when the economy is strong and demand for raw materials is high. However, when the economy slows down, the sector may underperform. Basic materials stocks are considered cyclical, meaning they are more sensitive to economic conditions than other stocks.
They may experience significant losses during a recession but also have the potential for strong returns during economic growth. Investing in basic materials stocks is important to consider factors such as a company’s financial strength, management team, and outlook for the industry. ETFs (Exchange Traded Funds) focusing on basic materials stocks can also be a way to invest in the sector.
We are not affiliated with nor endorse any of these companies, and nothing on this site constitutes a recommendation to buy or sell.
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Table of Contents
- List of Basic Materials Stocks
- Basic Materials Stocks - ETF List
- Largest Basic Materials Stocks
- 1. Air Prod. & Chemicals (NYSE: APD)
- 2. Sherwin-Williams (NYSE: SHW)
- 3. Freeport-McMoRan Inc (NYSE: FCX)
- 4. Southern Copper (NYSE: SCCO)
- 5. Corteva Inc (NYSE: CTVA)
- 6. Ecolab Inc (NYSE: ECL)
- 7. Newmont Corporation (NYSE: NEM)
- 8. Dow Inc (NYSE: DOW)
- 9. Nucor Corporation (NYSE: NUE)
- 10. DuPont de Nemours (NYSE: DD)
- Basic Materials ETFs List Breakdown
- Frequently Asked Questions
List of Basic Materials Stocks
| Symbol | Name | Industry |
|---|---|---|
| APD | Air Products and Chemicals, Inc. | Chemicals |
| SHW | The Sherwin-Williams Company | Specialty Chemicals |
| FCX | Freeport-McMoRan Inc. | Copper |
| SCCO | Southern Copper Corporation | Copper |
| CTVA | Corteva, Inc. | Agricultural Inputs |
| ECL | Ecolab Inc. | Specialty Chemicals |
| NEM | Newmont Corporation | Gold |
| DOW | Dow Inc. | Chemicals |
| NUE | Nucor Corporation | Steel |
| DD | DuPont de Nemours, Inc. | Chemicals |
| PPG | PPG Industries, Inc. | Specialty Chemicals |
| IFF | International Flavors & Fragrances Inc. | Specialty Chemicals |
| LYB | LyondellBasell Industries N.V. | Specialty Chemicals |
| ALB | Albemarle Corporation | Specialty Chemicals |
| VMC | Vulcan Materials Company | Building Materials |
| MLM | Martin Marietta Materials, Inc. | Building Materials |
| STLD | Steel Dynamics, Inc. | Steel |
| CF | CF Industries Holdings, Inc. | Agricultural Inputs |
| FMC | FMC Corporation | Agricultural Inputs |
| MOS | The Mosaic Company | Agricultural Inputs |
Basic Materials Stocks - ETF List
| Symbol | Name | Industry |
|---|---|---|
| GDX | VanEck Gold Miners ETF | Gold Miners |
| GUNR | FlexShares Morningstar Global Upstream Natural Resources Index Fund | Natural Resources |
| XLB | Materials Select Sector SPDR Fund | Broad Materials |
| GDXJ | VanEck Junior Gold Miners ETF | Gold Miners |
| GNR | SPDR S&P Global Natural Resources ETF | Natural Resources |
| LIT | Global X Lithium & Battery Tech ETF | Lithium |
| VAW | Vanguard Materials ETF | Broad Materials |
| XME | SPDR S&P Metals & Mining ETF | Metals & Mining |
| COPX | Global X Copper Miners ETF | Copper Miners |
| URA | Global X Uranium ETF | Uranium |
| FXZ | First Trust Materials AlphaDEX Fund | Broad Materials |
| ITB | iShares U.S. Home Construction ETF | Homebuilders |
| PICK | iShares MSCI Global Metals & Mining Producers ETF | Metals & Mining |
| MOO | VanEck Agribusiness ETF | Agribusiness |
| INFL | Horizon Kinetics Inflation Beneficiaries ETF | Broad Materials |
| SIL | Global X Silver Miners ETF | Silver Miners |
| IGE | iShares North American Natural Resources ETF | Natural Resources |
| URNM | Sprott Uranium Miners ETF | Uranium |
| XHB | SPDR S&P Homebuilders ETF | Homebuilders |
| SILJ | ETFMG Prime Junior Silver Miners ETFMG Prime Junior Silver Miners Fund | Silver Miners |
| IYM | iShares U.S. Basic Materials ETF | Broad Materials |
| NANR | SPDR S&P North American Natural Resources ETF | Natural Resources |
| GRID | First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index | Electric Energy Infrastructure |
| REMX | VanEck Rare Earth/Strategic Metals ETF | Metals & Mining |
| NUGT | Direxion Daily Gold Miners Index Bull 2x Shares | Gold Miners |
| FMAT | Fidelity MSCI Materials Index ETF | Broad Materials |
| RING | iShares MSCI Global Gold Miners ETF | Gold Miners |
| RTM | Invesco S&P 500® Equal Weight Materials ETF | Broad Materials |
| VEGI | iShares MSCI Agriculture Producers ETF | Agribusiness |
| MXI | iShares Global Materials ETF | Broad Materials |
| JNUG | Direxion Daily Junior Gold Miners Index Bull 2x Shares | Gold Miners |
| FTRI | First Trust Indxx Global Natural Resources Income ETF | Natural Resources |
| SGDM | Sprott Gold Miners ETF | Gold Miners |
| WOOD | iShares Global Timber & Forestry ETF | Timber |
| SLVP | iShares MSCI Global Silver Miners ETF | Silver Miners |
| BATT | Amplify Lithium & Battery Technology ETF | Lithium |
| HAP | VanEck Natural Resources ETF | Hard Assets Producers |
| PYZ | Invesco DWA Basic Materials Momentum ETF | Broad Materials |
| NAIL | Direxion Daily Homebuilders & Supplies Bull 3X Shares | Homebuilders |
| GDXU | MicroSectors Gold Miners 3X Leveraged ETN | Gold Miners |
| PKB | Invesco Dynamic Building & Construction ETF | Homebuilders |
| SGDJ | Sprott Junior Gold Miners ETF | Gold Miners |
| SLX | VanEck Steel ETF | Steel |
| JDST | Direxion Daily Junior Gold Miners Index Bear 2X Shares | Gold Miners |
| DUST | Direxion Daily Gold Miners Index Bear 2x Shares | Gold Miners |
| GOAU | US Global GO GOLD and Precious Metal Miners ETF | Gold Miners |
| CUT | Invesco MSCI Global Timber ETF | Timber |
| UYM | ProShares Ultra Basic Materials | Broad Materials |
| GRES | IQ Global Resources ETF | Natural Resources |
| GOEX | Global X Gold Explorers ETF | Gold Miners |
| HOMZ | Hoya Capital Housing ETF | Homebuilders |
| SIMS | SPDR S&P Kensho Intelligent Structures ETF | Electric Energy Infrastructure |
| FTAG | First Trust Indxx Global Agriculture ETF | Agribusiness |
| GMET | VanEck Green Metals ETF | Metals & Mining |
| GDXD | MicroSectors Gold Miners -3X Inverse Leveraged ETNs | Gold Miners |
| PSCM | Invesco S&P SmallCap Materials ETF | Broad Materials |
| MNM | Direxion Daily Metal Miners Bull 2X Shares | Metals & Mining |
| IVEG | iShares Emergent Food and AgTech Multisector ETF | Agribusiness |
| KROP | Global X AgTech & Food Innovation ETF | Agribusiness |
| GBLD | Invesco MSCI Green Building ETF | Homebuilders |
| WBAT | WisdomTree Battery Value Chain and Innovation Fund | Lithium |
| DMAT | Global X Disruptive Materials ETF | Broad Materials |
| CHIM | Global X MSCI China Materials ETF | Broad Materials |
| SMN | ProShares UltraShort Basic Materials | Broad Materials |
| SILX | ETFMG Prime 2X Daily Junior Silver Miners ETF | Silver Miners |
| NDIV | Amplify Natural Resources Dividend Income ETF | Natural Resources |
| GRNR | Global X Green Building ETF | Homebuilders |
| TINT | ProShares Smart Materials ETF | Broad Materials |
Cyclical Basic Material Stocks
Basic materials stocks and ETFs are considered cyclical, meaning they are more sensitive to economic conditions than other stocks. This sector performs well when the economy is strong and the demand for raw materials is high. Additionally, the sector can benefit from higher commodity prices during economic upswings, contributing to overall stock market performance.
However, when the economy slows down, the sector may underperform. Reduced industrial production and construction activities lead to a drop in demand for raw materials, negatively impacting the sector’s performance. Furthermore, a decline in commodity prices can add additional pressure, affecting the profitability of companies in this sector. Economic downturns often result in lower corporate spending on infrastructure projects, which further compounds the challenges basic materials companies face.
APD Stock Rover Report
Largest Basic Materials Stocks
Some of the most prominent and largest companies in the basic materials sector include the stocks below. Before investing in basic materials stocks, it is important to consider factors such as a company’s financial strength, management team, and outlook for the industry.
1. Air Prod. & Chemicals (NYSE: APD)
Air Products and Chemicals is a global industrial gases and chemicals company. It serves manufacturing, energy, healthcare, metals, and electronics sectors. It is crucial in supplying essential gases like oxygen, nitrogen, argon, helium, and specialty gases for industrial processes. The company also produces specialty chemicals with applications in diverse industries, including electronics, pharmaceuticals, and coatings. Air Products operates in over 50 countries, making it a key player in the industrial gases and chemicals sector.
Market cap: $60.63B
Annual dividend yield: 2.57%, $1.75 quarterly
2. Sherwin-Williams (NYSE: SHW)
The Sherwin-Williams Company is involved in the manufacturing, distributing, and selling paints, coatings, and related products. The company serves various sectors, including residential and commercial construction, industrial, automotive, and aerospace. Sherwin-Williams maintains a significant global footprint, with operations spanning North America, Europe, Asia, and other regions. Its customer base includes professional contractors, do-it-yourself consumers, and industrial clients.
Market cap: $79.67B
Annual dividend yield: 0.78%, $0.61 quarterly
3. Freeport-McMoRan Inc (NYSE: FCX)
Freeport-McMoRan is a major international mining company focusing on the exploration, mining, and production of copper, gold, and molybdenum. The company operates globally, mining activities in various regions, including the Americas, Indonesia, and Africa. It operates one of the largest copper mines in the world, located in Peru and another in the US. The company also operates two of the world’s biggest molybdenum mines in the US. Freeport-McMoRan is known for its significant presence in the copper market, a crucial metal in various industries such as construction, electronics, and transportation.
Market cap: $60.77B
Annual dividend yield: 0.71%, $0.08 quarterly
4. Southern Copper (NYSE: SCCO)
Southern Copper Corporation is a mining company primarily focused on the exploration, mining, smelting, and refining of Copper in Peru and Mexico. Copper is vital in construction, electronics, and telecommunications. Southern Copper produces other minerals like molybdenum, zinc, and silver as by-products of its mining activities. Its copper mine in Mexico is one of the largest in the world.
Market cap: $67.72B
Annual dividend yield: 4.57%, $1.00 quarterly
5. Corteva Inc (NYSE: CTVA)
Corteva Inc. is a multinational agricultural company specializing in developing, producing, and distributing agricultural products and services, focusing on seeds, crop protection products, and digital agriculture solutions. The company’s genetically modified products vary from corn, soybeans, wheat, and cotton to herbicides, insecticides, and fungicides. Despite the company’s sustainability claims, Corteva operates in all continents and major agricultural regions; its practices aren’t always safe for everyone.
Market cap: $33.33B
Annual dividend yield: 1.35%, $0.16 quarterly
6. Ecolab Inc (NYSE: ECL)
Ecolab Inc. is a multinational company that provides water, hygiene, and energy technologies and services. The company’s key focus areas include water treatment and management, hygiene and infection prevention, energy management, pest control, and food and beverage processing solutions. Ecolab is known for its commitment to sustainability and helping its customers achieve environmental and social responsibility goals. Surprisingly, I encountered no scandals, and its commitment seems authentic.
Market cap: $56.35B
Annual dividend yield: 1.15%, $0.57 quarterly
7. Newmont Corporation (NYSE: NEM)
Newmont Corporation is a leading global mining company focused on exploring, developing, and producing gold, copper, and other minerals. It is one of the largest gold mining companies in the world, with operations spanning multiple continents. In addition to gold, Newmont is involved in copper mining. The company operates mines in the United States, Canada, Australia, Ghana and Peru. Newmont strongly emphasizes sustainable and responsible mining practices, including environmental stewardship and community engagement.
Market cap: $48.47B
Annual dividend yield: 3.80%, $0.40 quarterly
8. Dow Inc (NYSE: DOW)
Dow Inc. is a multinational chemical corporation that operates in various segments, providing diverse products and solutions across industries. Dow’s focus areas include chemicals, plastics, agriculture, packaging, infrastructure, and consumer care. Given its widespread applications in various industries, the packaging and plastics segment has historically contributed to Dow’s business.
Market cap: $38.66B
Annual dividend yield: 5.08%, $0.70 quarterly
9. Nucor Corporation (NYSE: NUE)
Nucor Corporation is a steel production and manufacturing company operating steel mills, products, and raw materials. The company is known for its significant North American steel market presence. The company has seen significant growth recently and is trading near an all-time high.
Market cap: $43.77B
Annual dividend yield: 1.21%, $0.54 quarterly
10. DuPont de Nemours (NYSE: DD)
DuPont de Nemours is a multinational company operating in various industries, including chemicals, agriculture, electronics, and materials science. The company is recognized for its history of innovation and diverse range of products, spanning chemicals, polymers, agricultural seeds, and electronic materials. Some of its most significant innovations during the 20th century are nylon, Teflon and kevlar.
Market cap: $32.48B
Annual dividend yield: 1.91%, $0.36 quarterly
If you don’t wish to invest in individual basic materials stocks, you can always pick one of the ETFs invested in this sector. There is a large selection based on your investment goals and strategy.
Basic Materials ETFs List Breakdown
If you don’t wish to invest in individual basic materials stocks, you can always pick one of the ETFs invested in this sector. There is a large selection based on your investment goals and strategy.
GDX exposes investors to the gold mining sector by holding a diversified portfolio of stocks from companies engaged in gold exploration, development, and production. The fund's holdings may include both large and small-cap gold mining companies. The fund's biggest holding is mentioned earlier, Newmont Corp. Unlike the price of gold, if you invested $10.000 in this fund in 2006, you would have less money now.
GUNR seeks to expose investors to companies engaged in extracting and producing natural resources, focusing on the early stages of the supply chain. The fund's holdings typically include companies in the energy, metals, agriculture, and timber industries. However, the only stock featured in the fund's top 10 assets is Corteva. There is a much larger share of international stocks in the top 10, notably Shell and BHP. Since its inception in 2012, the fund has grown reasonably.
XLB exposes investors to companies in the S&P 500 index producing chemicals, construction materials, packaging, metals, and other industries. The fund's holdings typically include large-cap stocks from the materials sector. Its top 10 holdings feature eight stocks mentioned earlier. Since its inception in 1998, it quadrupled in value.
GDXJ seeks to replicate the performance of the MVIS Global Junior Gold Miners Index, which includes a diverse selection of small and mid-cap companies engaged in the exploration and production of gold and other precious metals. These companies often represent the gold mining spectrum's junior end (smaller and less-established companies). However, the stock has performed extremely poorly since its inception in 2009 and below many benchmarks more recently. It is a much riskier investment.
GNR seeks to replicate the performance of the S&P Global Natural Resources Index. The index includes companies from various sectors that produce and distribute natural resources, such as energy, metals, agriculture, and forestry. The fund’s graph perfectly represents a cyclical economy full of ups and downs. Its holdings contain some of the stocks mentioned earlier and other multinational giants such as BHP and Total Energies.
More ETFs
LIT exposes investors to companies engaged in various aspects of the lithium, EV, and battery technology supply chain. This industry has seen tremendous growth and attention from prominent investors in the last few years. The fund’s peak came in 2021, similar to many lithium stocks. There has been a lot more uncertainty in the sector since.
VAW encompasses industries involved in producing chemicals, construction materials, packaging, metals, and mining. The companies are both mid and large-cap stocks. Since its inception in 2004, the fund followed the sector's cyclical nature, but it has steadily grown with time. It is currently trading near its all-time high. Many of the above stocks appear in its top 10 holdings, but all trail German chemical leader Linde.
XME exposes investors to a diverse range of companies involved in extracting, producing, and processing metals and minerals. The fund includes large-cap and small-cap stocks, broadly representing the metals and mining industry. Its performance in the last five years has been rewarding for its investors. More than half of the fund is invested in the steel sector.
Investors often consider COPX as a way to gain exposure to the copper market, which is a crucial industrial metal used in various applications, including construction, electronics, and transportation. Unfortunately, this sector hasn’t always rewarded its investors. The last two years haven’t yielded very promising results, but there is a lot of hope for the future due to the interesting global uses for copper.
URA is a way to gain exposure to the uranium market, crucial in nuclear power generation. As the world looks at alternative energies, the importance of uranium has surged again. In the last five years, investments in this industry have multiplied, making uranium an interesting basic materials investment.
Basic Materials Stocks List Chart
This is the basic materials stocks list of a weekly chart of $XLB. Price is currently at the 78.6% Fibonacci level at the top of a rising wedge pattern. Preceding this pattern was a falling wedge pattern. It’s near the top of the resistance of a triple-bottom pattern. The current candlestick is a shooting star, so there might be a bearish reversal. Watch these support and resistance levels to see what happens throughout 2024.
Final Thoughts: Basic Materials Stocks
To conclude, basic materials are essential to many everyday products. One of the above stocks covers every step of their mining and production. Many ETFs listed invest in various basic materials for investors who want to diversify their holdings. The technology and environment around us are constantly changing, which requires more and better raw resources to satisfy our needs. Basic materials stocks and ETFs will fill our needs and adapt to our changing world. However, it remains a cyclical industry sensitive to our economy and other geopolitical factors.
Frequently Asked Questions
Best Materials Stocks to Watch:
- Rio Tinto (NYSE:RIO)
- Nucor (NYSE:NUE)
- Air Products & Chemicals (NYSE:APD)
- Eagle Materials (NYSE:EXP)
Material stocks could be a good investment since there is a steady demand for the raw materials they produce. Make sure to do your research before investing in them.
Basic materials in the stock market are companies that mine metals, lumber, and forestry products. Some chemical producers and energy source companies are also included.
