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XLB - ETF AI Analysis
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Materials Select Sector SPDR Fund (XLB)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Top Holdings
Several key holdings, such as Linde, Ecolab, and Martin Marietta Materials, have shown strong year-to-date performance, supporting the ETF's overall returns.
Low Expense Ratio
The ETF has a very low expense ratio, making it a cost-effective option for investors compared to other funds.
Focused Sector Exposure
The ETF's emphasis on the materials sector allows investors to target a specific area of the market with growth potential.
Negative Factors
High Sector Concentration
Over 84% of the fund is allocated to the materials sector, which increases vulnerability to sector-specific risks.
Weak Short-Term Performance
Recent one-month and three-month returns have been negative, indicating short-term challenges for the fund.
Limited Geographic Diversification
The ETF is heavily concentrated in U.S.-based companies, offering little exposure to international markets.
XLB vs. SPDR S&P 500 ETF (SPY)
AUM5.35B
RegionNorth America
Expense Ratio0.08%
Beta0.76
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield1.9%
Asset ClassEquity
Index TrackedS&P Materials Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume10,315,081
30 Day Avg. Volume13,316,211
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
52.01Price 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 focuses on companies in the materials sector, which includes industries like chemicals, metals and mining, and construction materials. It tracks the S&P Materials Select Sector Index and holds well-known companies such as Linde and Newmont Mining. Investors might consider XLB for exposure to industries that are essential for infrastructure and manufacturing, offering potential growth during economic expansions. However, it’s important to note that the materials sector can be cyclical, meaning its performance often depends on the overall economy, which can lead to ups and downs in value.
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
The Materials Select Sector SPDR Fund (XLB) leans heavily into the materials sector, with names like Linde and Sherwin-Williams shaping its performance. Linde, the fund’s largest holding, has been losing steam recently, weighed down by bearish momentum and macroeconomic challenges. Meanwhile, Sherwin-Williams has seen mixed results, with valuation concerns offsetting steady financial performance. On the brighter side, Nucor is rising, benefiting from strong technical momentum and strategic growth initiatives. With a clear focus on U.S.-based materials companies, the fund’s performance is closely tied to the cyclical nature of infrastructure and manufacturing demand.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 15.78% | $840.86M | $197.76B | 0.02% | 66 Neutral | |
| Newmont Mining | 8.56% | $455.95M | $106.98B | 164.21% | 81 Outperform | |
| Sherwin-Williams Company | 6.04% | $321.89M | $81.28B | -5.94% | 66 Neutral | |
| Freeport-McMoRan | 5.42% | $289.01M | $68.26B | 23.53% | 67 Neutral | |
| Ecolab | 5.26% | $280.50M | $73.51B | 10.20% | 66 Neutral | |
| Nucor | 5.21% | $277.37M | $37.13B | 36.22% | 74 Outperform | |
| Martin Marietta Materials | 4.77% | $254.05M | $37.96B | 15.56% | 73 Outperform | |
| Vulcan Materials | 4.63% | $246.85M | $38.58B | 7.75% | 77 Outperform | |
| Air Products and Chemicals | 4.28% | $228.29M | $53.92B | -16.57% | 46 Neutral | |
| Corteva | 4.26% | $227.04M | $44.25B | 17.76% | 75 Outperform |
XLB Technical Analysis
Positive
―
Price Trends
43.88
Positive
44.38
Positive
43.57
Positive
Market Momentum
0.37
Negative
61.30
Neutral
78.80
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLB, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 44.14, equal to the 50-day MA of 43.88, and equal to the 200-day MA of 43.57, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 78.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLB.
XLB Peer Comparison
Comparison Results
Performance Comparison
XLB
Materials Select Sector SPDR Fund
45.19
3.75
9.05%
VPU
Vanguard Utilities ETF
―
―
―
XLRE
Real Estate Select Sector SPDR Fund
―
―
―
VDC
Vanguard Consumer Staples ETF
―
―
―
XME
SPDR S&P Metals & Mining ETF
―
―
―
VAW
Vanguard 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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