Skip to content
Subscriber Only

Steel Delivers Big Payoff Long Before Trump Spends $1 Trillion

  • Among best-performing ETF in U.S. is one tracking producers
  • Industry’s profit outlook revived as glut eases, demand rises
Finished casted steel parts sit on a table in the finishing and cleaning area at the Quaker City Castings facility in Salem, Ohio, on Aug. 24, 2016.
Photographer: Ty Wright/Bloomberg
Updated on

Long before President Donald Trump has made good on his pledge to spend $1 trillion on U.S. infrastructure projects, investors already are seeing a big payoffs from domestic steel producers.

The VanEck Vectors Steel ETF delivered an 82 percent return in the year through Monday as shares surged in the industry it tracks, posting the third-best performance among non-leveraged exchange-traded funds in the U.S. A Bloomberg gauge of iron ore and steel producers --- which just a year ago was at its lowest since at least 2003 -- climbed more than 40 percent. Investors poured about $476 million into industrial-metals ETFs, and billionaire Stan Druckenmiller’s Duquesne Family Office boosted by 80 percent its stake in Nucor Corp., the largest U.S. steelmaker.