Diversified Stock Portfolio: 5 Sector ETFs and International ETFs To Buy

3. SPDR S&P Metals and Mining ETF (NYSE:XME)

5-Year Share Price Performance as of March 15: 94.16%

SPDR S&P Metals and Mining ETF (NYSE:XME) is placed among the best ETFs for a diversified stock portfolio. It aims to replicate the performance of the S&P Metals and Mining Select Industry Index. The index is composed of companies in the metals and mining sector, encompassing a variety of sub-industries such as Aluminum, Coal and Consumable Fuels, Copper, Diversified Metals and Mining, Gold, Precious Metals and Minerals, Silver, and Steel. Launched on June 19, 2006, SPDR S&P Metals and Mining ETF (NYSE:XME) has assets under management totaling $1.71 billion as of March 14, 2024, and it holds a portfolio of 33 stocks. The fund has a gross expense ratio of 0.35% as of March 17, 2024.

ATI Inc. (NYSE:ATI) is the top holding company of the SPDR S&P Metals and Mining ETF (NYSE:XME). The firm manufactures and markets specialty materials and complex components globally. On February 1, ATI Inc. (NYSE:ATI) reported a Q4 non-GAAP EPS of $0.64 and a revenue of $1.06 billion, outperforming market estimates by $0.02 and $10 million, respectively.

According to Insider Monkey’s fourth quarter database, 32 hedge funds were bullish on ATI Inc. (NYSE:ATI), compared to 31 funds in the prior quarter. Richard Driehaus’ Driehaus Capital is the top shareholder of the company, with 1.55 million shares valued at $70.4 million.

Liberty Park Capital made the following comment about ATI Inc. (NYSE:ATI) in its Q1 2023 investor letter:

“We are pleased that Liberty Park Fund, LP has gotten off to a strong start in 2023. January was a particularly strong month for both of our funds, and LPF was able to use the market’s strength to install several new short positions; those positions greatly helped the portfolio in February and March as the market receded.

ATI Inc. (NYSE:ATI) and ZEUS each reported better-than-expected earnings caused by a widening spread between selling prices and commodity prices. We expect these spreads to compress and for margins at each of the companies to revert back to normal levels.”