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. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  4. Inverse ETF

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

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

    Dow Chemical Stock Trades Ex-Dividend Tuesday (DOW)

    Dow Chemical will send its dividend payment on July 29 to shareholders of record as of June 30.
  3. ETFs & Mutual Funds

    The Top 5 Materials ETFs for 2016

    Read about five of the best materials exchange-traded funds available for 2016, and learn how you can get the exposure you need in this sector.
  4. 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.
  5. Markets

    Dow Chemical Restructures at a Critical Juncture (DOW, DD)

    The restructuring comes at a critical juncture as Dow Chemical seeks antitrust approval for the E.I. du Pont de Nemours merger.
  6. 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.
  7. 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.
  8. Markets

    Dow Chemical and DuPont Merger Could Face More Scrutiny (DOW, DD)

    Dow Chemical and DuPont could face increased scrutiny for their deal after Senator from Iowa calls for a careful review.
  9. Markets

    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.
  10. ETFs & Mutual Funds

    (VAW) Vanguard Materials ETF: Top 5 Holdings

    Identify the top five holdings in the Vanguard Materials exchange-traded fund (ETF), and evaluate each company's fundamentals and stock performance.
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 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 >>
  6. 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 >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center