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Upturn AI SWOT - About
Materials Select Sector SPDR® Fund (XLB)
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Upturn Advisory Summary
06/10/2025: XLB (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type ETF | Historic Profit -0.68% | Avg. Invested days 30 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/10/2025 |
Key Highlights
Volume (30-day avg) 4600153 | Beta 1.22 | 52 Weeks Range 73.12 - 96.90 | Updated Date 06/11/2025 |
52 Weeks Range 73.12 - 96.90 | Updated Date 06/11/2025 |
Upturn AI SWOT
Materials Select Sector SPDR® Fund
ETF Overview
Overview
The Materials Select Sector SPDRu00ae Fund (XLB) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Materials Select Sector Index. It primarily invests in stocks of companies from industries including chemicals, construction materials, containers & packaging, metals & mining, and paper & forest products.
Reputation and Reliability
State Street Global Advisors (SSGA) is a well-established and reputable ETF issuer with a long track record of managing sector-specific funds.
Management Expertise
SSGA has extensive experience in managing index-tracking ETFs and sector-specific funds, demonstrating strong management expertise.
Investment Objective
Goal
The fund aims to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Materials Select Sector Index.
Investment Approach and Strategy
Strategy: The ETF employs a passive management strategy, attempting to replicate the performance of the Materials Select Sector Index.
Composition The ETF holds stocks of companies primarily in the materials sector, including chemicals, construction materials, metals & mining, and paper & forest products.
Market Position
Market Share: XLB holds a significant market share within the materials sector ETF category.
Total Net Assets (AUM): 6680000000
Competitors
Key Competitors
- iShares U.S. Basic Materials ETF (IYM)
- Vanguard Materials ETF (VAW)
- Invesco S&P 500 Equal Weight Materials ETF (RTM)
Competitive Landscape
The materials sector ETF market is moderately competitive, with XLB holding a dominant position due to its large AUM and early-mover advantage. Competitors like IYM and VAW offer similar exposure but may differ in weighting methodologies or expense ratios. XLB's advantage lies in its high liquidity and broad market recognition, while competitors might offer slightly different risk/return profiles.
Financial Performance
Historical Performance: Past performance does not guarantee future results. Investors should review the fund's fact sheet for historical return data.
Benchmark Comparison: The ETF's performance closely tracks the Materials Select Sector Index, with minor deviations due to fees and tracking error.
Expense Ratio: 0.12
Liquidity
Average Trading Volume
XLB exhibits high liquidity, typically demonstrated by a daily average trading volume in the millions of shares.
Bid-Ask Spread
The bid-ask spread for XLB is generally tight, indicating low trading costs.
Market Dynamics
Market Environment Factors
Economic growth, infrastructure spending, commodity prices, and global trade policies significantly influence the performance of XLB.
Growth Trajectory
The ETF's growth trajectory is closely tied to the performance of the materials sector, influenced by global economic cycles and demand for raw materials.
Moat and Competitive Advantages
Competitive Edge
XLB benefits from its first-mover advantage in the materials sector ETF space, leading to high AUM and strong liquidity. Its low expense ratio and broad market exposure make it an attractive option for investors seeking to track the performance of the materials sector. State Street's established reputation further reinforces investor confidence in the fund. The ETF's large size allows for efficient trading and minimal tracking error compared to its benchmark.
Risk Analysis
Volatility
XLB's volatility is generally aligned with the broader materials sector, which can be subject to cyclical fluctuations and commodity price volatility.
Market Risk
Specific risks include commodity price fluctuations, exposure to economic cycles, and potential regulatory changes affecting the materials sector.
Investor Profile
Ideal Investor Profile
The ETF is suited for investors seeking to gain exposure to the materials sector, those looking for sector diversification, and those expecting economic growth to drive demand for raw materials.
Market Risk
XLB is suitable for long-term investors seeking sector-specific exposure and can be used as a building block in a diversified portfolio.
Summary
The Materials Select Sector SPDRu00ae Fund (XLB) is a leading ETF providing exposure to the US materials sector. Its large AUM, low expense ratio, and strong liquidity make it an appealing choice for investors looking to track the performance of companies involved in the production of raw materials and related products. The fund's performance is closely tied to economic cycles and commodity prices, making it a potentially volatile but rewarding investment option. Given its broad diversification across the materials sector, XLB offers a convenient and cost-effective way to participate in the growth of this essential industry.
Similar Companies
IYM
iShares U.S. Basic Materials ETF
IYM
iShares U.S. Basic Materials ETF
MXI
iShares Global Materials ETF
MXI
iShares Global Materials ETF
RTM
Invesco S&P 500® Equal Weight Materials ETF
RTM
Invesco S&P 500® Equal Weight Materials ETF
VAW
Vanguard Materials Index Fund ETF Shares
VAW
Vanguard Materials Index Fund ETF Shares
Sources and Disclaimers
Data Sources:
- State Street Global Advisors (SSGA) Website
- ETF.com
- Morningstar
- Yahoo Finance
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Materials Select Sector SPDR® Fund
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, 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.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.