- IYM offers exposure to a basket of principally large-cap stocks from the GICS materials and industrials sectors.
- Basic materials players have been in the limelight earlier this year as persistent inflation maintained its tight grip.
- I warn investors against extrapolating the fund's performance prior to September 2021 since the index change led to pronounced shifts in exposure, thus impacting its risk/reward profile.
- The article contains a closer look at valuation.
- I believe the inflation beneficiaries thesis does not look that resilient anymore as bears will be flexing the capital scarcity narrative. IYM is Hold.
For further details see:
IYM Has Seen Gains Earlier In 2022. What To Consider Now