| Five steel investments to consider to gird portfolios offer ways to profit from economic growth. The five steel investments feature two exchange-traded funds (ETFs) and three stocks. The handful of paths to profit from steel can provide staying power to portfolios that could use a bit of diversity. The steel sector may face slack demand, especially due to economic slowdowns in China and other parts of the world, so it certainly is not a get-rich-quick investment. However, mining equities tend to perform strongly during the winter months starting in October, based on almost three decades of seasonality analysis. However, that seasonal uptick failed to materialize in 2024, according to a recent report from Citi Research analysts. December particularly performs strongly compared to other months on average but fell short of the norm at the end of last year, Citi Research wrote. Five Steel Investments to Consider to Gird Portfolios: Strong Survive The seasonality effect tends to be strong and, at times, can overcome the effects of any weakness in commodity or company fundamentals. Successfully investing in steel can come from identifying and buying shares in the sector's strongest funds and stocks. "However, this time around this effect seems to be absent and the miners underperformed during the last couple of months driven by several factors," Citi Research assessed. However, steel can strengthen portfolios, if the right selections are made. Among the many funds that feature steel, two stood out to Bob Carlson, who heads the Retirement Watch investment newsletter and is the inventor of his proprietary IRA calculator. 
Bob Carlson, editor of Retirement Watch and Paul Dykewicz. Five Steel Investments to Consider to Gird Portfolios: SLX There is s a pure-play ETF on steel, VanEck Steel (SLX), which has been around more than 10 years, Carlson told me. The fund is about 60% in U.S. equities and 40% in non-U.S. equities. About 61% of the fund recently was in the 10 largest positions. The biggest positions in the fund recently were Rio Tinto (OTCMKTS: RTNTF), Vale (NYSE: VALE), Nucor (NYSE : NUE), Steel Dynamics (NASDAQ: STLD) and Carpenter Technology (NYSE: CRS). Income investors will appreciate that the dividend yield recently reached 3.55%. Cautious investors should be aware that the returns for SLX can be "very volatile," Carlson said. SLX lost 17.93% in 2024 after gaining more than 31% in 2023, he added. The fund is up 3.56% so far in 2025. But it fell 7.38% in the past three months and 10.40% during the last 12 months. 
Courtesy of stockcharts.com. Five Steel Investments to Consider to Gird Portfolios: XME Investors who want a more diversified portfolio should look at SPDR S&P Metals & Mining (XME), Carlson counseled. The fund is invested only in U.S. equities with about 75% of the stocks classified as in the Basic Materials sector, while 13% is in the energy sector and almost 12% is in Industrials, Carlson continued. About 51% of the fund is in the 10 largest positions. The five biggest holdings in XME recently were Carpenter Technology, United States Steel (NYSE: X), ATI Inc. (NYSE: ATI), Newmont (NYSE: NEM) and Alcoa (NYSE: AA). XME recently had a current dividend yield of 0.65%. It lost 6.75% in the last three months. But it is up 5.36% so far in 2025 and 4.59% over the last 12 months. 
Courtesy of stockcharts.com. | 
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