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XLB - ETF AI Analysis
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Materials Select Sector SPDR Fund (XLB)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Leading Materials Companies in Top Holdings
Several of the largest positions, including major materials and mining firms, have delivered strong year-to-date performance, helping support the fund’s returns.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of the returns generated by the portfolio.
Negative Factors
Sector Concentration in Materials
Most of the portfolio is invested in the materials sector, which increases sensitivity to commodity cycles and industry-specific downturns.
High Weight in a Few Stocks
A small number of holdings make up a large share of the fund, which can increase the impact if any of those companies perform poorly.
Limited Geographic Diversification
The ETF is heavily focused on U.S. companies with only a small allocation to the UK, offering little exposure to other global markets.
XLB vs. SPDR S&P 500 ETF (SPY)
AUM6.48B
RegionNorth America
Expense Ratio0.08%
Beta0.77
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield1.77%
Asset ClassEquity
Index TrackedS&P Materials Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume19,801,062
30 Day Avg. Volume16,428,910
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
57.89Price Target Upside― Downside
Rating ConsensusModerate 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. and U.K. materials companies. It holds businesses that make chemicals, metals, construction materials, and packaging—key building blocks for the economy. Well-known holdings include Linde and Sherwin-Williams. Someone might invest in XLB to benefit from potential growth when the economy and construction activity are strong, while also getting diversification across many materials companies. A key risk is that it is heavily tied to the materials sector, so its price can swing with commodity prices and economic cycles.
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 leaning heavily on a few industrial giants, with Linde setting the tone as a steady leader, while Ecolab, Corteva, and Martin Marietta add to the fund’s upward pull with generally rising trends despite some valuation worries. The real spark lately has come from Newmont and Freeport-McMoRan, where strong momentum in mining has helped power performance. On the softer side, CRH has been more mixed, occasionally losing steam and tempering gains. Overall, this is a U.S.-centric bet on the materials cycle, with a clear tilt toward chemicals, miners, and construction-linked names.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 14.56% | $955.54M | $228.88B | 8.43% | 66 Neutral | |
| Newmont Mining | 7.94% | $521.29M | $119.21B | 136.98% | 81 Outperform | |
| Freeport-McMoRan | 5.41% | $354.78M | $81.03B | 45.12% | 67 Neutral | |
| Air Products and Chemicals | 4.92% | $322.84M | $64.12B | -1.35% | 46 Neutral | |
| Corteva | 4.91% | $322.29M | $53.27B | 32.41% | 75 Outperform | |
| Sherwin-Williams Company | 4.66% | $305.64M | $79.23B | -6.44% | 66 Neutral | |
| Ecolab | 4.47% | $293.46M | $77.31B | 9.25% | 66 Neutral | |
| CRH plc | 4.25% | $278.93M | £50.39B | 1.10% | 76 Outperform | |
| Nucor | 4.04% | $265.23M | $37.24B | 23.76% | 74 Outperform | |
| Martin Marietta Materials | 3.78% | $247.86M | $35.21B | 22.26% | 73 Outperform |
XLB Technical Analysis
Neutral
―
Price Trends
50.41
Negative
47.16
Positive
45.75
Positive
Market Momentum
-0.34
Positive
33.83
Neutral
21.19
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 51.85, equal to the 50-day MA of 50.41, and equal to the 200-day MA of 45.75, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 33.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.19 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
49.19
6.51
15.25%
VDE
Vanguard Energy ETF
―
―
―
VPU
Vanguard Utilities ETF
―
―
―
XME
SPDR S&P Metals & Mining ETF
―
―
―
VAW
Vanguard Materials ETF
―
―
―
IYM
iShares U.S. Basic Materials ETF
―
―
―
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.
Disclaimer
This 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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