Chemicals Industry ETF

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DEFINITION of 'Chemicals Industry ETF'

An exchange-traded fund that invests in manufacturers of chemicals. As of 2010, there are no pure-play chemical industry ETFs, but basic materials and agriculture ETFs may be suitable proxies for them, since the chemical sector usually accounts for more than 50% of their investments.

INVESTOPEDIA EXPLAINS 'Chemicals Industry ETF'

The chemicals sector includes a broad range of companies, including manufacturers and distributors of paint, industrial gases and agricultural products such as potash. Chemical industry components of basic materials ETFs would typically include companies such as Du Pont and Dow Chemical. In agriculture ETFs, the chemical sector is represented by companies such as Monsanto.

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RELATED FAQS
  1. What other sectors have the highest correlation with the chemicals sector?

    Correlations between the chemicals sector and the rest of the market work in both causative and reactive directions, so there ... Read Full Answer >>
  2. How did Dow Chemical defeat an international monopoly in the 1900s?

    Herbert Henry Dow, a Canadian by birth, was a remarkable man. A chemist and an entrepreneur, Dow was one of the first people ... Read Full Answer >>
  3. How can I check to see if an ETF’s price reflects its asset value?

    An investor can check the net asset value (NAV) for an exchange-traded fund (ETF) on the website for the ETF after the market ... Read Full Answer >>
  4. What are the differences between an MLP exchange traded fund (ETF) and an MLP exchange ...

    The main difference between a master limited partnership (MLP), exchange-traded fund (ETF) and an MLP exchange-traded note ... Read Full Answer >>
  5. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Investors use corporate bonds for a variety of reasons. These bonds can offer dependable income, safety, diversity, marketability ... Read Full Answer >>
  6. Which sectors have similar pros and cons to the drugs sector?

    In financial terms, the drug sector has a high level of risk and growth. It must gather a lot of up-front investment to drive ... Read Full Answer >>
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