Materials Sector: Examples, Stocks & How to Invest
The materials sector helps satisfy consumers’ need for material goods.
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Humans have long had an insatiable appetite for materials—natural resources, chemicals, building products, and everything in between. Materials-focused companies, including those listed in the S&P 500, operate to satisfy our demand for these physical products.
Materials are made up of commodities, the raw substances mined or harvested from the earth that go into making numerous products—many involving construction. Investing in commodities stocks is one way to diversify your portfolio to include this sector. (Another way is to invest in the commodities themselves by trading futures contracts based on the prices of raw materials.)
