What is a 'Steel Industry ETF'

The steel industry ETF is an exchange-traded fund that invests primarily in the manufacture of steel and related steel industry products.

BREAKING DOWN 'Steel Industry ETF'

The steel industry ETF group contains manufacturers of all steel related products, including mining and production. Steel was once big business in the United States, but these days there are fewer steel mills. Some of these exchange-traded funds have a global reach. China and Russia also produce large amounts of steel.

Some of the products these funds refer to include steel mines, production of some steel-based goods and recycling industry related materials. The investment possibilities for these exchange-traded funds go beyond the physical products that are produced, and can include the work of the companies that hold the leases on the land and distributors as well.

In a bull market, steel stocks rank higher as they are tied to development and production in the economy. That is not to say that they are infallible; many steel towns saw a large economic downturn after the Industrial Revolution. When Bethlehem Steel went bankrupt, many in the town of Bethlehem and the surrounding area found themselves unable to find work in an industry that was experiencing a sharp decline.

The History of Bethlehem Steel

Approximately two hours outside of Philadelphia, Pennsylvania lies a small town named Bethlehem. It was once the home of Bethlehem Steel, one of the largest steel producers in the United States. The town originally produced iron for the railroads. Most of the railroads on the east coast are forged with Bethlehem iron. Then, in later years, production switched gears and began producing steel. By 1868, the steel business was booming.

Bethlehem prospered during this time. Between the iron and steel production, they were building railroads and warships for most of the United States. After the Industrial Revolution, the U.S. economy switched focus, and industrial manufacturing began to experience a downturn. Without being able to change with the times, Bethlehem Steel began to lose profitability. They eventually filed for bankruptcy in 2001. The company was dissolved, and any remaining assets were sold to International Steel Group.

Today, the Steel Stacks enjoy a second life. They are home to Bethlehem’s annual summer music festival, Musikfest. When they are not hosting musical acts, the former steel mill shows movies in the theatre and comedy shows in the auditorium. During Christmas, the town transitions into Christmas City and holds one of the countries largest holiday markets, known as Christkindlmarkt.

The town’s use of the defunct steel mill has served as inspiration for other towns that have suffered the same fate as it now attracts a large tourist population.

  1. Morganization

    Morganization refers to monopolization techniques used by J.P. ...
  2. Lakshmi Mittal

    Lakshmi Mittal is the chairman and CEO of ArcelorMittal.
  3. Delivery Instrument

    A delivery instrument is a document given to the holder of a ...
  4. Anti-Dumping Duty

    Anti-dumping duty is a protectionist tariff that a government ...
  5. Paper Industry ETF

    The paper industry ETF is an exchange-traded fund that invests ...
  6. Input-Output Analysis

    Input-output analysis refers to the study of the particular effects ...
Related Articles
  1. Insights

    United States Steel Upgraded By JPMorgan (X)

    Shares of U.S. Steel climbed as much as 4.22% Monday, reaching a session high of $19.75 after the company's shares were endorsed by analysts at JPMorgan.
  2. Investing

    Top 4 Steel Stocks for 2018

    Trump's plan to impose tariffs on steel imports and use U.S. steel for all new pipelines and pipeline repairs, positions these four steel stocks for gains.
  3. Investing

    Can U.S. Steel Stock Really Climb 50% in One Year? (X)

    United States Steel comes highly recommended for risk-tolerant investors, according to Barron's.
  4. Investing

    Trump's Wall Could Be Great News for Steel Stocks

    So Trump signed the order for the Wall. Some industries stand to gain. A lot.
  5. Investing

    Steel Stocks Reach 52-Week Highs on Trump Rally (AKS, NUE)

    Several steel manufacturers soared to 52-week highs on Tuesday, as did the Market Vectors Steel ETF.
  6. Investing

    Where Does the U.S. Import Steel From?

    Look at the top sources of U.S. steel imports, and no, it's not China.
  7. Insights

    U.S. Raises China Steel Import Duty Sixfold (SLX)

    The U.S. said Tuesday it would raise import duties on Chinese cold-rolled steel by 522%.
  8. Investing

    Why AK Steel Stock Surged 32% Last Week (AKS, SLX)

    Steel manufacturers posted strong gains last week in the wake of Donald Trump's surprise victory for the White House.
  9. Investing

    Steel Cycle Looks Good

    Buying cyclical stocks at the right time can be a great investment strategy, but it requires more than just trying to time a cycle to benefit.
  10. Insights

    Trump's Steel and Aluminum Tariffs: What You Need to Know

    A look at key issues regarding the latest import tariffs on steel and aluminium announced by President Trump
  1. What was the first company with a $1 billion market cap?

    United States Steel Corportation (NYSE:X) was the world's first company to surpass the market capitalization mark of $1 billion ... Read Answer >>
  2. What raw materials do auto manufacturers use?

    Learn about some of the raw materials required for auto manufacturing, including iron for steel, aluminum, rubber, and petroleum ... Read Answer >>
  3. What are the most common ETFs that track the metals and mining sector?

    Discover investment opportunities with ETFs that invest in physical precious and base metals and miners such as gold, silver, ... Read Answer >>
  4. What is the long-term outlook of the metals and mining sector?

    Take a look at the long-term outlook for the metals and mining sector as reported by the industry agency council of the World ... Read Answer >>
Trading Center