Chemicals Industry ETF

AAA

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.

RELATED TERMS
  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. Business Software & Services Industry ...

    An exchange-traded fund (ETF) that invests in business software ...
  3. Auto Industry ETF

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

    An exchange-traded fund that invests in companies with a significant ...
  5. Actively Managed ETF

    An exchange-traded fund that has a manager or team making decisions ...
  6. ETF Sponsor

    The company or financial institution which creates and administers ...
RELATED FAQS
  1. 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 >>
Related Articles
  1. Mutual Funds & ETFs

    Exchange Traded Notes: An Alternative To ETFs

    ETNs offer yet another way to track an index. Find out what they have to offer, and what's at stake.
  2. Mutual Funds & ETFs

    An Inside Look At ETF Construction

    If you're an investor who likes to understand how and why your investment products work, this article is for you!
  3. Investing Basics

    How To Invest In Commodities

    Find out which futures, options or funds will be your perfect commodity portfolio fit.
  4. Mutual Funds & ETFs

    Spread Out Risk With Sector-Based ETFs

    These ETFs take the sector rotation strategy from institutional investors and puts it in your hands.
  5. Active Trading

    Commodities: The Portfolio Hedge

    These diverse asset classes can provide downside protection and upside potential. Find out how to use them.
  6. Mutual Funds & ETFs

    How ETF Arbitrage Works

    ETF arbitrage brings the market price of ETFs back in line with net asset values when divergence happens. But how does ETF arbitrage work?
  7. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  8. Mutual Funds & ETFs

    Take Advantage of Cheap Oil, Invest in these ETFs

    With crude oil prices at record lows, investors should consider oil ETFs over oil company stocks as ETFs more closely mirror the price of oil
  9. Bonds & Fixed Income

    How to Diversify with Muni Bond ETFs

    Thinking of diversifying with bonds? Consider these muni bond ETFs.
  10. Chart Advisor

    These ETFs are Breaking Out of Chart Patterns Now

    Three buys and one sell; here are four ETFs breaking out of chart patterns right now.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center