Basic Materials ETF (NYSEArca: IYM), Vanguard Materials ETF (NYSEArca: VAW), and Fidelity MSCI Materials Index ETF (NYSEArca: FMAT). The two sectors are more tightly tied to price moves in the commodities and raw materials markets, which have reached new heights recently. However, investors should note that if the Federal Reserve hikes short-term rates to dampen inflation, the yield curve would flatten, so “the spread between borrowing and lending narrows for the banking sector and results in a net interest margins squeeze,” according to BCA Research.