The iShares U.S. Basic Materials ETF is Heading for $150

The iShares U.S. Basic Materials ETF is up by more than 25% since the start of the year and could be set to break past the $150 psychological point before the end of the year.

IYM Continues to Rally

The iShares U.S. Basic Materials ETF (IYM) is a fund designed to provide investors with broad exposure to the Materials – Broad segment of the stock market. It is a passively managed exchange-traded fund that has been around since 2000.

IYM is sponsored by Blackrock, one of the leading asset managers in the world. The ETF has over $890 million in assets under management, making it one of the average-sized funds seeking to match the performance of the Materials – Broad segment of the stock market. The fund wants to match the performance of the Dow Jones U.S. Basic Materials Index before fees and expenses.

Meanwhile, the Dow Jones U.S. Basic Materials Index basically measures the performance of the basic materials sector of the U.S. stock market. IYM has perhaps the heavies allocation in the basic materials sector, about 100% of its portfolio is comprised of stocks in that area.

Some of its biggest holdings include Linde Plc. (LIN), which accounts for about 18.35% of total assets. The next ones are Air Products And Chemicals Inc. (APD) and Freeport Mcmoran Inc. (FCX).

IYM Could Touch $150 Soon

IYM has been one of the top-performing funds in funds in the basic materials sector. It has rallied by more than 25% since the start of 2021, while its 52-week performance stands at 33.25%. At press time, IYM is trading at $140.89 per share. Over the past year, the ETF has traded between $104.99 and $141.25.

IYM could rally towards the $150 mark over the coming weeks if it maintains the current momentum. The latest infrastructure bill in the United States is expected to make a massive impact in the materials sector, and this could positively affect IYM’s performance in the coming weeks and months.