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XLB - ETF AI Analysis

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XLB

Materials Select Sector SPDR Fund (XLB)

Rating:67Neutral
Price Target:
XLB’s rating suggests it is a solid but not outstanding materials-sector ETF, with its quality driven largely by strong holdings like Newmont Mining, Vulcan Materials, and Martin Marietta, which show robust financial performance, positive earnings outlooks, and generally supportive technical trends. However, weaker names such as Air Products and Ecolab, which face profitability or bearish technical and valuation challenges, along with some overvaluation risks across several top holdings, prevent the fund from scoring higher and highlight the risk of sector-specific and stock-specific setbacks within materials.
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)

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 very much a U.S. materials story, with performance hinging on a few heavyweight names. Linde sits in the driver’s seat: despite some recent wobbling, it’s been a steady climber over the past few months. Corteva is another bright spot, quietly rising and helping to offset weakness elsewhere. On the flip side, Newmont and Sherwin-Williams have been losing steam, dragging on returns, while construction-linked names like CRH and Martin Marietta have been soft. Overall, the fund is concentrated in chemicals and building materials, not a broad global mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde14.67%$940.22M$232.90B14.76%
66
Neutral
Newmont Mining6.87%$440.62M$124.07B158.15%
81
Outperform
Freeport-McMoRan5.09%$326.07M$88.22B110.57%
67
Neutral
Air Products and Chemicals4.80%$307.47M$65.36B11.42%
46
Neutral
Corteva4.78%$306.42M$57.47B53.18%
75
Outperform
Sherwin-Williams Company4.67%$299.37M$78.79B-4.23%
66
Neutral
CRH plc4.51%$288.99M£52.98B26.63%
76
Outperform
Vulcan Materials4.49%$288.00M$36.55B21.30%
77
Outperform
Martin Marietta Materials4.41%$282.72M$36.02B26.87%
73
Outperform
Nucor4.39%$281.41M$39.28B67.08%
74
Outperform

XLB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
50.55
Negative
100DMA
47.75
Positive
200DMA
45.96
Positive
Market Momentum
MACD
-0.20
Negative
RSI
55.83
Neutral
STOCH
91.21
Negative
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 49.07, equal to the 50-day MA of 50.55, and equal to the 200-day MA of 45.96, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 91.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLB.

XLB Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$6.69B0.08%
67
Neutral
$8.78B0.09%
67
Neutral
$8.60B0.69%
72
Outperform
$4.52B0.35%
63
Neutral
$2.97B0.09%
67
Neutral
$1.39B0.38%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XLB
Materials Select Sector SPDR Fund
50.41
12.83
34.14%
VPU
Vanguard Utilities ETF
AIRR
First Trust RBA American Industrial Renaissance 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.
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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