SPDR S&P Metals & Mining ETF: $XME
The SPDR S&P Metals & Mining ETF (XME) is a passively managed exchange-traded fund (ETF) that tracks the performance of the S&P Metals & Mining Select Industry Index. The ETF was launched in 2006 and is managed by State Street Global Advisors.
The S&P Metals & Mining Select Industry Index is a market-capitalization-weighted index that consists of publicly traded companies in the metals and mining industry. The index is designed to measure the performance of companies involved in the discovery, development, and production of metals, including iron, aluminum, copper, nickel, and zinc, as well as the mining of coal and other minerals.
The XME ETF is a popular choice for investors who want to gain exposure to the metals and mining industry without having to pick individual stocks. The ETF holds a diversified portfolio of companies in the industry, which helps to reduce risk by spreading it across multiple holdings.
One of the key advantages of the XME ETF is its low expense ratio. The ETF has an expense ratio of 0.35%, which is lower than the average expense ratio for actively managed funds in the metals and mining industry. This means that investors pay less in fees, which can add up over time and significantly impact returns.
In terms of performance, the XME ETF has generally done well over the long term. From its inception in 2006 through the end of 2020, the ETF has returned an average of 10.5% per year. While this is not a guarantee of future performance, it does demonstrate the potential for solid returns in the metals and mining industry.
The XME ETF is suitable for investors who are looking to add exposure to the metals and mining industry to their portfolio. It is a low-cost, diversified way to invest in the sector and offers the potential for long-term growth. However, it is important to keep in mind that the metals and mining industry is subject to certain risks, such as commodity price fluctuations and changes in demand. As with any investment, it is important to carefully consider your own financial goals and risk tolerance before investing in the XME ETF or any other security.
