The Materials Select Sector SPDR FundNYSE American: XLB

S&P 500 Sector Returns show Communication Services and Financials in a dead heat for the top spot, with Materials underperforming YTD. Commodity Prices have been soft lately due to weakness in China, while the US Dollar Index is up YTD, pressuring resource-related equities. XLB ETF offers strategic exposure to the Materials sector, with a strong technical situation and potential for diversification amid geopolitical jitters.

XLB, a well-established ETF focusing on material stocks in the S&P 500, has underperformed the diversified bellwether this year. We measure XLB's qualities against its closest peer - VAW and feel it is the superior product. Yet, we don't feel XLB would be worth pursuing at this stage.

The Materials Select Sector SPDR Fund is showing strong buy signals due to growing demand for green hydrogen, copper, and clean drinking water. XLB has a competitive expense ratio and attractive dividend yield. The fund has outperformed its competitors in the past year. Top holdings like Linde, Air Products and Chemicals, and Ecolab are poised to benefit from the increasing demand for green hydrogen, copper, and clean water.

This article provides information on industry metrics within the materials sector. The mining and metals subsector has value and quality scores slightly higher than in the past. The construction materials industry has a high quality score. Quick facts are also given on XLB, a highly concentrated sector ETF.

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.

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.

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.

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

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.