2. Market Vectors Steel
Virtually all of the Morningstar-rated ETFs currently carry the moniker of “Fairly Valued” or “Overvalued.” There are exceptions, of course. Market Vectors Steel (SLX) sports a price-to-Morningstar-fair-value ratio of 0.83. That alone portends the possibility of 20% upside before even reaching a fairly valued ratio of 1.00.
Equally compelling, the technical picture is serving up several upbeat trends. The 50-day climbed above the 200-day in early October. The price has enjoyed strong support at the 50-day moving average since the June lows — the same lows where most global assets suffered during the rising rate, “taper tantrum” of the May-June period. Lastly, Goldman Sachs recently upgraded the sector in November.