The Basic Materials sector ranks seventh out of the 11 sectors as detailed in our 1Q26 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Basic Materials sector ranked ninth. It gets our Neutral rating, which is based on an aggregation of ratings of the 176 stocks in the Basic Materials sector as of January 20, 2026. See a recap of our 4Q25 Sector Ratings here.
Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the sector. Not all Basic Materials sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 25 to 177). This variation creates drastically different investment implications and, therefore, ratings.