By sector
Materials ETFs
The companies that dig up, refine, and supply the raw stuff almost everything else is built from.
What Materials ETFs are
A Materials ETF is a single fund that holds shares in many companies that produce raw materials — think chemicals, industrial metals, mining, packaging, and construction supplies. (An ETF, or exchange-traded fund, is a basket of lots of stocks you can buy in one go.)
These companies sit at the very start of the supply chain, so their fortunes tend to move with global demand for building and manufacturing. Some people hold a small slice as a way to lean toward the commodity-linked corner of the economy.
The catch: this is one narrow part of the market, not the whole thing. Materials is a cyclical sector — meaning it tends to swing more sharply up and down than a broad world fund — so it's usually treated as a small add-on, not a first building block.
At a glance
Why beginners look here
Raw material of everything
These firms supply the metals, chemicals, and building blocks that nearly every other industry depends on.
Tied to global demand
Because materials sit at the start of the supply chain, the sector often moves with construction and manufacturing activity worldwide.
Cyclical, so it swings
The trade-off is volatility — commodity-linked companies can rise and fall more sharply than a broad market fund.
What to look for
Popular Materials ETFs
A few of the largest, pulled live from the screener — an example, not a recommendation.
State Street® Materials Select Sector SPDR® ETF
State Street® SPDR® S&P® Global Natural Resources ETF
State Street® SPDR® S&P® Metals & Mining ETF
iShares Gold Producers UCITS ETF
Amundi STOXX Europe 600 Basic Resources UCITS ETF Dist
Amundi STOXX Europe 600 Basic Resources UCITS ETF Acc
Good to know
Is this too risky for a beginner?
It carries more risk than a broad world ETF because it concentrates on one cyclical sector. Many beginners start with a broad fund first and only later add a small materials slice, if at all.
How is this different from a commodity or gold ETF?
A materials ETF holds shares in companies that mine and process raw materials; a commodity or gold ETF tracks the price of the raw material itself. They're related, but not the same thing.
How much would someone typically put in?
There's no set rule, but narrow sector funds are usually kept to a small part of a portfolio — often a single-digit percentage — precisely because they can swing so much.
Related topics
Finance Hamster provides educational information about ETFs and investing. It is not investment, tax, or legal advice, and not a recommendation to buy or sell any security. Markets carry risk; do your own research or consult a licensed adviser.