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Cetera Investment Advisers bought a new position in shares of iShares Global Materials ETF (NYSEARCA:MXI) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 5,526 shares of the company's stock, valued at approximately $587,000. Cetera Investment
The materials sector is broadly overvalued versus 11-year averages, with mining/metals most overpriced but offset by excellent quality scores. The iShares Global Materials ETF offers global materials sector exposure with an overweight in mining/metals and less company-specific risk than the U.S.-focused XLB. MXI is slightly cheaper than XLB based on valuation ratios but exhibits inferior and even negative aggregate growth rates.
Materials are often viewed as a sleepy, cyclical corner of the market, but the artificial intelligence (AI) buildout is adding vim and vigor to the sector.
The chemicals and mining/metals subsectors are overvalued by over 30% versus 11-year averages, though mining/metals has a good quality score. iShares Global Materials ETF provides diversified global exposure to materials, with a 47% weighting in mining/metals and 39% in chemicals. MXI offers better value than the U.S. benchmark XLB but has historically underperformed it since 2006.
Ameritas Advisory Services LLC lessened its holdings in iShares Global Materials ETF (NYSEARCA:MXI) by 96.8% in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 285 shares of the company's stock after selling 8,596 shares during the period. Ameritas Advisory Services LLC's
MXI hits a new 52-week high, up 37% from its low, as strength in commodities and chemicals fuels momentum in materials stocks.
The materials sector appears overvalued by 22% versus 11-year averages, with construction materials the least overvalued and chemicals showing the weakest fundamentals. The iShares Global Materials ETF offers global diversification in the materials sector, with lower company risk and recent overperformance compared to XLB, but it lags long-term. Seven stocks were cheaper than their peers in November.
The materials sector is overvalued by about 10% relative to a historical baseline, but the construction materials industry is still attractive. MXI offers global exposure in the materials sector with a diversified portfolio but has underperformed XLB in historical performance and risk metrics. Four stocks cheaper than their peers in January.