US Steel Shares Outperform S&P 500 - Deliver 30% Higher Returns In Single Year

United States Steel Corp‘s X stock is trading over 28% higher in premarket trading on Monday, owing to news around its acquisition by Japan-based Nippon Steel Corp NISTF. The transaction values United States Steel at $14.9 billion.

US Steel Investors Surpass S&P 500 30%

Here’s a chart depicting how a $1000 investment in U.S. Steel and the S&P 500 would have fared over the past year.

A $1000 investment in U. S. Steel stock made a year ago, would now have grown to $1,592.95. That’s a whopping 59.3% return for X stockholders. On the other hand, an equal amount invested in an S&P 500 ETF would have grown to $1,236.15.

The outperformance has been more pronounced since mid-August, when U.S. Steel launched a formal review process, after rejecting rival Cleveland-Cliffs Inc‘s CLF $7.3 billion offer.

Also Read: U.S. Steel’s Operations In Minnesota Generated $1.8B In Economic Impact

Exchange-traded funds that closely track the S&P 500 index, namely the SPDR S&P 500 ETF Trust SPY, the iShares Core S&P 500 ETF IVV and the Vanguard 500 Index Fund ETF VOO are up over 23.6% over the past year.

US Steel Investors Outperform XME By 40%

Now, let’s see how U.S. Steel’s stock has fared against the material sector benchmark – SPDR S&P Metals & Mining ETF XME. U.S. Steel commanded 4.81% of the XME ETF portfolio as of Dec. 14.

U.S. Steel stock has outperformed the materials sector benchmark by a good degree as well. While X stock returned 59.3% to investors, XME ETF holders only gained 17.5% over the past 1 year.

U.S. Steel is the fourth largest holding of the XME portfolio, after Alpha Metallurgical Resources Inc AMR, Cleveland-Cliffs and Hecla Mining Co HL.

Related: Why Steel Giant U. S. Steel Shares Are Soaring Today

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