Textile Industry ETF

DEFINITION of 'Textile Industry ETF'

An exchange-traded fund that invests in textile manufacturers. An ETF dedicated solely to textiles does not exist as of 2010. This may be due to a number of reasons including little investor interest, the lack of an investable textile index and the fact that most textile manufacturers are relatively smaller companies based in Asia.

BREAKING DOWN 'Textile Industry ETF'

There are very few ways to invest in the textile industry through an ETF. One alternative is to invest in cotton, which is a key input in many textile products including denim and terrycloth. There are a few ETFs and ETNs traded in the U.S. that focus on soft commodities and have a significant weight in cotton.

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