Materials Select Sector SPDR® ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in quality exposure and has a significant underweight in volatility exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Linde

Sherwin-Williams

Freeport-McMoRan

Ecolab

Air Products and Chemicals

Nucor

Newmont Mining

Dow Inc

Corteva Inc

Martin Marietta Materials

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Materials Select Sector SPDR® Fund earns an Average Process Pillar rating. The primary contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Noteworthy risk-adjusted performance also supports the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Materials Select Sector Index.  In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, and of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: chemicals; metals and mining; paper and forest products; containers and packaging; and construction materials. The fund is non-diversified. 

 The portfolio is overweight in basic materials and consumer cyclical relative to the category average by 43.3 and 6.1 percentage points, respectively. The sectors with low exposure compared to category peers are energy and industrials, underweight the average by 27.8 and 10.6 percentage points of assets, respectively. The portfolio is composed of 31 holdings and is relatively concentrated. Specifically, 66.3% of the fund’s assets are housed within the top 10 holdings, as opposed to the typical peer's 23.9%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 3% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Materials Select Sector SPDR® Fund's strong equity team drives the strategy's Above Average People Pillar rating. There are two managers listed on the fund: Karl Schneider, Ted Janowsky. The team is well equipped, with an average of 21 years of portfolio management experience. Together, they manage a total of six strategies, with solid long-term prospects. The strategies average a Bronze asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

Materials Select Sector SPDR Fund

XLB tracks a market-cap-weighted index of US basic materials companies. The fund includes only the materials components of the S&P 500.

Fidelity MSCI Materials Index ETF

iShares U.S. Basic Materials ETF

Vanguard Materials ETF

Going into the Q1 earnings season, earnings releases from the sector giants will determine the movement of these funds.

Will Materials ETFs Gain Further as Q1 Earnings Unfold?

Chevron

Energy Select Sector SPDR Fund

SPDR S&P Metals & Mining ETF

Exxon Mobil

Cyclical stocks, which are pegged to the economy's health, are rallying, and it isn't too late to get in.

Materials, Miners and Big Oil Stocks Have More Upside

If you're interested in broad exposure to the Materials - Broad segment of the equity market, look no further than the Materials Select Sector SPDR ETF (XLB), a passively managed exchange traded fund launched on 12/16/1998.

Should You Invest in the Materials Select Sector SPDR ETF (XLB)?

Global X MSCI Argentina ETF

Blackstone Group

SPDR Dow Jones Industrial Average ETF

MercadoLibre

NVIDIA

Invesco QQQ

SPDR S&P 500 ETF Trust

MAX S&P 500 4X Leveraged ETN

The Fed wants to cut interest rates and add liquidity before the US election, but the market is not cooperating.

Jared Dillian On Market Sentiment And Private Equity's Big Bubble

S&P 500 Materials Sector SPDR  XLB is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 22.08% from its 52-week low price of $74.33/share.

Materials ETF (XLB) Hits New 52-Week High

The Materials Select Sector SPDR Fund ETF has been the top-performing S&P 500 sector in the past month. The ETF has been boosted by strong economic growth and a weakening US Dollar Index, as well as sector rotation into resource-based companies. The breakout in XLB's chart suggests a potential upside target of $98, and I highlight key support to monitor on the chart ahead of a bullish seasonal stretch.

XLB Surges To The Sector-Performance Lead, More Upside Likely

Financial Select Sector SPDR Fund

Consumer Discretionary Select Sector SPDR Fund

Cyclical companies could get a boost if the consumer price index for February, to be released next month, is lower than expected.

Buy These Stocks. Inflation Is Still on Its Way Down.

Communication Services Select Sector SPDR Fund

The S&P 500's Q3 of 2023 dividends increased 0.7% to a record $144.2 billion from Q2 of 2023's $143.2 billion and were 2.7% higher than the $140.3 billion recorded in Q3 of 2022.

4 Sectors & Its ETFs to Play Solid Dividend & Buyback Yield

The materials sector is close to 11-year averages in value and quality metrics. The construction materials industry is undervalued, whereas mining and metals are overvalued. Fast facts on Materials Select Sector SPDR® Fund ETF.

XLB: Materials Dashboard For December

Materials Select Sector SPDR Fund has outperformed the S&P 500 by 13% since the start of the pandemic rebound. XLB is a sector ETF that focuses on the basic materials sector, which is often overlooked by investors. The chemical industry, which makes up a significant portion of XLB's holdings, is rebounding and experiencing growth, but faces competition and volatility.

XLB: The ETF That Beat The S&P 500

Teucrium Sugar Fund

First Trust NASDAQ Global Auto Index Fund

iShares U.S. Insurance ETF

US Global Jets ETF

CarMax

Lowe's

Invesco Dynamic Building & Construction ETF

United States Oil Fund LP

Universal Insurance Hlds

SPDR S&P Transportation ETF

As Hurricane Idalia makes landfall along the Florida coast, let's discuss the key areas that call for attention right now for profits or losses.

Hurricane Idalia Puts These ETF Areas in Focus

Materials Select Sector SPDR Fund ETF is a passively managed fund that replicates S&P's Materials Select Sector Index. The fund is top-heavy, with the top 10 stocks accounting for 66% of its total weight, and Linde plc alone accounting for 20%. The materials sector is highly cyclical and dependent on global economic growth, with concerns about the Chinese economy potentially impacting the sector.

XLB Is A Hold Considering Risks Of Global Deflation Led By China

The Materials Select Sector SPDR® Fund ETF offers exposure to the materials sector of the S&P 500 Index. The XLB ETF's portfolio is concentrated in the chemicals industry, with strong earnings growth, but also has exposure to containers & packaging and construction materials. XLB has underperformed the S&P 500 and is heavily dependent on the performance of the chemicals industry.

XLB: Ultimately A Chemicals Play With An Unclear Outlook

Invesco Dynamic Pharmaceuticals ETF

SPDR S&P Oil & Gas Exploration & Production ETF

It has been almost a month since the second-quarter earnings season kicked off. These sectors emerged winners so far in this earnings season.

5 Sector ETF Winners Amid Q2 Earnings Season

While some of the major players seem to have less chances of beating earnings estimates, the sector is expected to post a earnings decline of 40.3%.

What's in Store for Materials ETFs in Q2 Earnings?

For long-term investors, the Materials Select Sector SPDR Fund ETF presents a good buying opportunity. The materials sector trades at a discount, with a forward P/E of 16.7 versus the S&P 500's 18.5 times forward earnings, offering potential upside. The chemicals industry's earnings growth power is likely to support the share price and dividends.

XLB: A Right Time To Buy With Long-Term Investment Horizon

China's central bank announced some modest easing as it seeks to boost industrial activity. Though this is a small move, additional easing is probable and very much needed, especially given recent employment data in China. Investors should view this move as bullish for industrial stocks, as well as for ETFs like the Materials Select Sector SPDR Fund ETF (XLB).

China's Easing Is Great News For XLB

Teucrium Corn Fund

Advisorshares Restaurant ETF

SPDR S&P Insurance ETF

VanEck Vectors Agribusiness ETF

United States Natural Gas Fund LP

Teucrium Wheat Fund

El Nino, the periodic weather phenomenon characterized by an abnormal warming of the Pacific Ocean, has set in 2023.

Harnessing El Nino in 2023 & Its Impact on ETF World

Archer-Daniels-Midland Company

BHP Billiton

Coterra Energy

Ecopetrol

First Trust DJ Global Select Dividend Index Fund

Schwab Fundamental International Large Co. Index ETF

Fortescue Metals Group Limited

First Trust Indxx Global Natural Resources Income ETF

Xt EAFE Div Yld Shs

Nutrien

Petroleo Brasileiro

Invesco FTSE RAFI Developed Markets ex-U.S. ETF

Rio Tinto plc Sponsored

Suncor Energy

Vale S.A.

SPDR S&P Global Dividend ETF

First Trust Indxx Global Natural Resources Income ETF holds 50 global stocks, mostly in materials and energy. The portfolio is quite concentrated in a few countries, industries and holdings. This fund may profit by inflation.

FTRI: ETF With 8% Yield To Bet On Commodities

Industrial Select Sector SPDR Fund

Technology Select Sector SPDR Fund

Consumer Staples Select Sector SPDR Fund

Real Estate Select Sector SPDR Fund

Utilities Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

Companies within the S&P 500 are expected to report the weakest earnings growth in nearly three years.

Consumer, Industrials, Energy ETFs in Focus as Earnings Season Kicks Off

SPDR S&P Dividend ETF

Vanguard Small Cap Value ETF

Traditionally, April brings with it seasonal tailwinds for the equity world.

5 Top-Ranked ETFs to Buy for April

Vanguard Real Estate ETF

The global economy has been struggling with high price inflation for more than a year. These sectors and their ETFs tend to perform better in a high inflationary environment.

4 Inflation-Proof Sector ETFs to Play

Materials stocks, sensitive to the economic cycle, have come under pressure considering renewed recession jitters. The USD has rebounded but is very tame at the moment - watch the greenback for key implications on XLB.

Materials Ebb Amid A Quiet Dollar, XLB Momentum Waning

iShares U.S. Home Construction ETF

Bank of America believes that old economy sectors are likely to fare better in the coming days. Sector leadership is going to change because rates are likely to remain higher for longer.

Old Economy Investing is Back: Sector ETFs to Win

iShares Transportation Average ETF

Vanguard Mid-Cap ETF

The American economy expanded faster than expected in the fourth quarter, with GDP rising 2.9% annually versus 2.6% expectation.

News for Materials Select Sector SPDR Fund ETF (XLB)