Can materials stocks build on their strong momentum this year, following some positive signs in 2025? The wide universe of materials stocks offers exposure to areas ranging from gold to the A.I. tech megatrend. From copper and gold to chemicals and construction materials, the space — and its related ETFs — have a case to make this year.
See more: Fidelity ETF Leader Craig Ebeling Breaks Down 2025 ETF Market Data
It can be helpful to revisit "how materials performed in 2025 first.":https://institutional.fidelity.com/advisors/insights/spotlights/equity-sector-performance-outlook/materials-sector Gold mining companies, for example, benefitted from gold’s steady, solid ascent towards $5,000 an ounce. While, at press time, it has since dropped slightly from that total, global uncertainty may continue to bolster its case.
Materials Stocks: More Than Construction?
Copper, meanwhile, continues to stand out for its role in tech supply chains. Copper is one of a number of important materials required to construct GPUs, valuable as RAM becomes more and more scarce. Other circuitry, too, requires copper, boosting demand for the key metal and the companies that mine it. Chemicals, too, are required for those key tech processes, speaking to the breadth of materials stocks as a space.
That’s where ETFs can offer some key opportunities. The Fidelity MSCI Materials Index ETF (FMAT ) charges an 8 basis point fee to track the MSCI USA IMI Materials 25/50 Index. The index includes MSCI materials names, or companies engaged in the extraction, production, and processing of natural resources.
Its specific, targeted allocation can make it an appealing option for satellite materials. At the same time, by diversifying beyond just gold, it can play a helpful role. The fund returned 12.34% over the last three months, according to ETF Database data. Over the last 1 year, it has done even better, returning 22.19%.
Overall, the materials stocks ETF may be poised for another healthy clip of returns this year. Whether in precious metals or construction materials, the factors are there for a healthy performance in the space this year.
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