The Basic Materials sector ranks sixth out of the 11 sectors as detailed in our 4Q26 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Basic Materials sector ranked fifth. It gets our Neutral rating, which is based on an aggregation of ratings of the 174 stocks in the Basic Materials sector as of October 15, 2026. See a recap of our 3Q26 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 28 to 211). This variation creates drastically different investment implications and, therefore, ratings.