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. Inverse ETF

    An exchange-traded fund (ETF) that is constructed by using various ...
  4. Auto Industry ETF

    An exchange-traded fund (ETF) that invests specifically in the ...
  5. Consumables

    Goods used by individuals and businesses that must be replaced ...
  6. Services Sector ETF

    Exchange-traded funds (ETFs) that invest in either the consumer ...
Related Articles
  1. ETFs & Mutual Funds

    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. Markets

    Materials Sector: Industries Snapshot (DOW, DD)

    Explore the chemicals, packaging, construction materials and mining industries. See which factors are driving growth in each industry of the materials sector.
  3. ETFs & Mutual Funds

    (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. Markets

    Eastman Chemical Stock Trades Ex-Dividend Monday (EMN)

    Eastman Chemical will send its dividend payment on July 1 to shareholders of record as of June 15.
  5. ETFs & Mutual Funds

    Are These 3 Agriculture Stocks Headed Higher?

    Strong momentum across the agriculture sector is causing many traders to take a closer look at farming chemicals via the PAGG ETF.
  6. Markets

    Agricultural Stocks May Head Even Lower (POT, MON)

    Agricultural chemical companies may resume major downtrends after working off oversold technical conditions.
  7. Markets

    DuPont and Dow Chemical Surge on Merger Talks

    On Wednesday, the shares of both E.I. Du Pont De Nemours & Co. and Dow Chemical Co. surged by more than 11%, after the Wall Street Journal reported on Tuesday that both companies are in the advanced ...
  8. Investing

    Westlake Chemical Seals the Deal With Axiall

    The latest big takeover battle in the chemical industry has ended in an expensive peace agreement. After months of vying to acquire peer company Axiall (NYSE: AXLL) with first friendly, and ...
  9. ETFs & Mutual Funds

    4 Trends in the ETF Market to Date in 2016 (SPY)

    Learn about four emerging ETF trends in 2016, including what they signal about broader trends in investing and the financial services industry.
  10. ETFs & Mutual Funds

    5 Popular Materials ETFs in 2016 (GDX, XLB)

    Learn how the five most popular materials ETFs for 2016 can provide exposure to large-cap materials companies, homebuilders and mining companies of all sizes.
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 companies give the purest exposure to the chemicals sector?

    Explore investment opportunities in the chemicals sector, and discover how investors can make pure chemical investments and ... Read Answer >>
  3. 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 >>
  4. Which segments of the chemicals sector have the highest profit margins?

    Explore the wide-ranging chemicals sector and learn which of the five segments of the chemicals sector typically have the ... Read Answer >>
  5. 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 >>
  6. What product categories make up the chemicals sector?

    Discover interesting facts about one of the world's largest core industry sectors -- the chemicals industry -- and the product ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center