The SPDR S&P Metals & Mining ETF (XME) is an exchange-traded fund designed to track the performance of companies operating in the U.S. metals and mining industry. The ETF is managed by State Street Global Advisors (SSGA) and trades under the ticker XME on the NYSE Arca.

Classified as a sector equity ETF, the fund invests in companies engaged in the extraction, processing, and production of metals, as well as businesses involved in steel manufacturing, coal mining, and other basic materials industries. 

Its strategy provides investors with targeted exposure to a sector that is closely tied to global economic activity and commodity demand.

The ETF follows a passive management approach and seeks to replicate the performance of the S&P Metals & Mining Select Industry Index, which consists of companies in the metals and mining industry drawn from the S&P Total Market Index.

Diversification and sector exposure

XME provides exposure primarily associated with:

• Mining.

• Metals.

• Steel.

• Coal.

• Materials.

• Iron ore.

• Industrial metals.

• Industrials.

The portfolio includes companies operating across various segments of the metals and mining value chain, including steel producers, industrial metal miners, metallurgical coal companies, and manufacturers of materials used in heavy industry.

The ETF's performance generally reflects changes in metal commodity prices, industrial activity, and global demand for raw materials.

Structure and costs

XME shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The SPDR S&P Metals & Mining ETF was launched in 2006 to provide investors with targeted exposure to companies in the U.S. metals and mining sector.

Since inception, the fund has experienced multiple commodity cycles, reflecting changes in global demand for steel, iron ore, copper, and other industrial metals.

In recent years, increased infrastructure spending, the energy transition, rising demand for critical minerals used in electric vehicles and renewable energy technologies, as well as fluctuations in the Chinese economy and global supply chains, have continued to shape the performance of the companies held in the ETF's portfolio.

Additional Information

SPDR S&P Metals & Mining ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $4.43 billion.

Over the past 12 months, SPDR S&P Metals & Mining ETF recorded a return of 20.67%, with its price trading between $87.44 and $132.83 during the same period.

The ETF is traded under the ticker XME.