IYM is 1/10 the size of peer XLB, and there are many good reasons for that. Concentrating on the metals and mining industry within the basic materials sector can outperform the broader materials sector. We don't see an urgent use for IYM and rate it as a sell.
Designed to provide broad exposure to the Materials - Broad segment of the equity market, the iShares U.S. Basic Materials ETF (IYM) is a passively managed exchange traded fund launched on 06/12/2000.
The basic materials sector is moderately overvalued relative to 11-year averages, but the mining and metals industry is undervalued. IYM: A capped, but very concentrated ETF. 5 materials stocks cheaper than their peers in June.