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 methods can an investor use to get leveraged exposure to the chemicals sector?

    The best methods to gain leveraged exposure to the chemicals sector are to buy the ProShares Ultra Basic Materials ETF (UYM) ... Read Full Answer >>
  2. 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 >>
  3. 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 >>
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    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  5. What does a high turnover ratio signify for an investment fund?

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