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VanEck Steel ETF framed as hedge amid geopolitical pressure and tariffs
The VanEck Steel ETF, which holds 40 stocks, has a 1-year performance rebound but has been about 24% more volatile than the S&P 500 over the period cited.
Yahoo Finance highlights how geopolitical turmoil has kept commodity prices elevated, supporting commodity-linked equities, including steel. The outlet points investors to the VanEck Steel ETF, ticker SLX, as a potential way to balance exposure to the materials trade with equity market turbulence.
The ETF is described as a 40-stock fund, with 10 holdings accounting for 57% of assets, spanning U.S. steel-related firms plus companies in Latin America and Asia. Yahoo Finance also notes the fund’s roughly $167 million asset base, and that its 1-year return has helped offset prior lag versus the S&P 500.
On risk and valuation, the piece says SLX was about 24% more volatile than the S&P 500 based on the cited beta measure, and it trades at around 21 times trailing earnings. The article argues that valuation may be less of an immediate constraint when commodity prices rise faster than broader stock prices.
On what it says drives potential insulation, Yahoo Finance points to trade protectionism. It cites high tariffs on foreign steel, including Section 232 measures and tariff hikes up to 50%, as a factor that can limit cheaper imports and support pricing power for domestic producers. It also adds that public sector infrastructure spending can help steel makers even when consumer spending and tech earnings face pressure in risky markets.
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