Chemicals Industry ETF

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.

BREAKING DOWN '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.

RELATED TERMS
  1. Basic Materials Sector

    A category of stocks that accounts for companies involved with ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Auto Industry ETF

    An exchange-traded fund (ETF) that invests specifically in the ...
  4. Sector ETF

    A class of exchange-traded fund that invests in the stocks and ...
  5. Services Sector ETF

    Exchange-traded funds (ETFs) that invest in either the consumer ...
  6. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
Related Articles
  1. Mutual Funds & ETFs

    IYM: iShares US Basic Materials ETF

    Learn about the iShares US Basic Materials exchange-traded fund, which invests in the equities of chemicals, metals and industrial gas companies.
  2. Stock Analysis

    Arch Chemicals Looks To Boost Growth

    Arch Chemicals has articulated a strategy to focus exclusively on biocides and increase sales growth and margins as it transitions toward that goal.
  3. Mutual Funds & ETFs

    (XLB) Materials SPDR ETF: Top 5 Holdings

    Learn about the Materials Select Sector SPDR Fund and its top five holdings, including DuPont, Dow Chemical, Monstanto, LyondellBasell and Ecolab.
  4. Stock Analysis

    Dow Chemical Third Quarter Earnings Preview

    On Thursday, October 25, 2012, Dow Chemical (NYSE:DOW) will announce its third quarter earnings. The consensus analyst estimate has dropped from 39 cents a share to the current estimate of earnings ...
  5. Stock Analysis

    Creative Chemicals (DD, DOW, BF)

    Comparing three large chemical companies for the right chemistry in your portfolio.
  6. Stock Analysis

    Agricultural Chemical Leaders

    The agricultural chemical sector has been outperforming, and it appears it is back on track to be a leading sectore again.
  7. Stock Analysis

    How Dow Chemical (DOW) Makes its Money

    An in depth look at how Dow has made itself vital to so many industries in its 118 year history.
  8. Stock Analysis

    Innospec Might Be A Name To Watch In Specialty Chemicals

    Innospec is under-followed, but interesting nonetheless.
  9. Mutual Funds & ETFs

    The 3 Largest Materials ETFs (XLB, VAW)

    Find out which three exchange-traded funds (ETFs) are the largest in the basic materials sector, and how they are performing year-to-date in 2016.
  10. Investing News

    Bayer Considers Buying Monsanto (MON)

    Shares of Monsanto were up 11.0% to $100.30 at Thursday's open on a Bloomberg report that Bayer is exploring a bid for the $40 billion agricultural chemicals company.
RELATED FAQS
  1. What are the most common ETFs that track the chemicals sector?

    Learn more about the chemical industry and opportunities presented to investors by chemical sector ETFs and materials companies ... Read Answer >>
  2. What methods can an investor use to get leveraged exposure to the chemicals sector?

    Learn the methods an investor can use to gain exposure to the chemicals sector. The chemicals sector is an important indicator ... Read Answer >>
  3. What are the major types of insurance policies that insurance companies will offer?

    Explore one of the largest market sectors, the chemicals sector, and learn which primary basic commodities are used in producing ... Read Answer >>
  4. What are the primary reasons for investing in the chemicals sector?

    Learn about the benefits and risks of chemicals sector investments. Find out how chemical securities can help build a diversified ... Read Answer >>
  5. What types of industries are the main consumers of the products of the chemicals ...

    Learn about industries that use products manufactured by chemical companies. Explore common materials used and produced by ... Read Answer >>
  6. What countries represent the largest portion of the global chemicals sector?

    Learn more about the chemical industry and the growth of chemical products sales around the world. Find out why companies ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center