XLB - ETF AI Analysis
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Materials Select Sector SPDR Fund (XLB)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating solid momentum in the materials sector.
Leading Materials Companies in Top Holdings
Several of the largest positions, such as Linde, Freeport-McMoRan, and Nucor, have delivered strong year-to-date results, helping drive the fund’s overall performance.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of their returns over time.
Negative Factors
Sector Concentration in Materials
Most of the portfolio is tied to the materials industry, so the ETF can be heavily affected if this sector faces a downturn.
High Dependence on a Few Holdings
A small number of stocks, especially the largest position in Linde, make up a significant share of the fund, increasing the impact if any of these companies struggle.
Some Top Holdings Are Underperforming
A few key positions, such as CRH and Martin Marietta Materials, have shown weak year-to-date performance, which can drag on overall returns if the trend continues.
XLB vs. SPDR S&P 500 ETF (SPY)
AUM7.20B
RegionNorth America
Expense Ratio0.08%
Beta0.74
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield1.74%
Asset ClassEquity
Index TrackedS&P Materials Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume11,061,711
30 Day Avg. Volume13,549,315
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
59.60Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering27
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XLB Summary
The Materials Select Sector SPDR Fund (XLB) is an ETF that tracks the S&P Materials Select Sector index, focusing on U.S. materials companies. It holds businesses that make chemicals, metals, construction materials, and packaging—key ingredients for building, manufacturing, and infrastructure. Well-known holdings include Linde and Sherwin-Williams. Someone might invest in XLB to benefit from economic growth and construction or to add diversification beyond tech and consumer stocks. However, this fund can be volatile because it is heavily tied to the materials sector, which can rise and fall with the economy and commodity prices.
How much will it cost me?The Materials Select Sector SPDR Fund (XLB) has an expense ratio of 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking the S&P Materials Select Sector Index rather than requiring active stock picking.
What would affect this ETF?The Materials Select Sector SPDR Fund (XLB) could benefit from increased infrastructure spending and economic growth, which drive demand for raw materials and construction products. However, it may face challenges from rising interest rates, which can increase borrowing costs for companies in the sector, and potential regulatory changes affecting mining or chemical industries. Its heavy focus on U.S.-based materials companies makes it sensitive to domestic economic conditions and policy shifts.
XLB Top 10 Holdings
XLB is heavily tilted toward U.S. materials names, with industrial gases and metals doing most of the heavy lifting. Linde and Nucor have been the fund’s workhorses, steadily rising and giving the ETF a solid backbone in chemicals and steel. Freeport-McMoRan has been more of a mixed bag, adding some spark when copper sentiment improves. On the flip side, paint and construction plays like Sherwin-Williams, Vulcan Materials, CRH, and Ecolab have been losing steam, acting as a brake on performance. Overall, it’s a concentrated bet on cyclical, U.S.-focused materials.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 14.98% | $1.07B | $239.43B | 12.79% | 66 Neutral | |
| Newmont Mining | 7.37% | $528.25M | $114.91B | 100.63% | 81 Outperform | |
| Nucor | 5.89% | $422.07M | $52.84B | 113.84% | 74 Outperform | |
| Freeport-McMoRan | 5.58% | $400.16M | $89.11B | 58.87% | 67 Neutral | |
| Air Products and Chemicals | 4.67% | $334.66M | $64.46B | 7.27% | 46 Neutral | |
| Corteva | 4.49% | $321.91M | $53.21B | 15.20% | 75 Outperform | |
| Sherwin-Williams Company | 4.45% | $318.67M | $76.23B | -12.32% | 66 Neutral | |
| Vulcan Materials | 4.34% | $311.38M | $33.82B | -2.81% | 77 Outperform | |
| CRH plc | 4.34% | $311.10M | $67.07B | 6.67% | 76 Outperform | |
| Ecolab | 4.04% | $289.23M | $71.29B | -2.98% | 66 Neutral |
XLB Technical Analysis
Neutral
―
Price Trends
50.60
Negative
50.36
Negative
47.23
Positive
Market Momentum
-0.30
Positive
45.09
Neutral
30.90
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLB, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 51.11, equal to the 50-day MA of 50.60, and equal to the 200-day MA of 47.23, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 30.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XLB.
XLB Peer Comparison
Comparison Results
Performance Comparison
XLB
Materials Select Sector SPDR Fund
50.29
7.53
17.61%
VPU
Vanguard Utilities ETF
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XLRE
Real Estate Select Sector SPDR Fund
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―
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XME
SPDR S&P Metals & Mining ETF
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VAW
Vanguard Materials ETF
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IYM
iShares U.S. Basic Materials ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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