XLB ETF

US stocks, including the Dow Jones, Nasdaq, and S&P 500, fell at the start of trading on Monday, the last full trading day of 2024, with the Nasdaq dropping more than 1.3%. As the year wraps up, Morning Brief hosts Seana Smith and Madison Mills discuss the top and bottom-performing sectors in 2024. For more expert insights and market analysis, you can watch additional episodes of Morning Brief.

The materials sector is essential but underrepresented in the S&P 500; a 5%-10% exposure is recommended for a diversified portfolio. We will discuss the largest material sector fund, XLB, as well as other equally compelling materials sector funds such as VAW and RSPM. We will also compare the performance and other attributes of the three funds to determine which may be the best investment over the long term.

This article provides a top-down analysis of the basic materials sector, focusing on fundamental metrics for various industries. The construction materials industry is the most attractive subsector based on value and quality scores. Fast Facts on XLB, an ETF overweight in chemicals.

Looking for broad exposure to the Materials - Broad segment of the equity market? You should consider the Materials Select Sector SPDR ETF (XLB), a passively managed exchange traded fund launched on 12/16/1998.

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.