XLB — State Street Materials Select Sector SPDR ETF

Overview

The State Street Materials Select Sector SPDR ETF (XLB) is a Materials sector fund managed by State Street Investment Management. With $8.17 billion in assets under management and a trading price of $50.16, the fund represents a significant position within its category. It holds an overall rank of #113 out of 120 tracked ETFs across all categories and has received an ETFValuer grade of D with a score of 48.6 out of 100. The fund charges an expense ratio of 0.08% and offers a dividend yield of 2.70%. Being one of only two ETFs tracked in the Materials category, its substantial asset size suggests broad investor adoption despite its lower ranking. The combination of high assets and a low expense ratio indicates a mature vehicle, though the D grade reflects specific performance or risk factors relative to its peers.

Recent price action shows a decline over the shortest horizons, with the fund down 2.62% over one day and 1.32% over one week. A slight recovery is visible in the one-month period, where returns improved to -0.56%, followed by a positive shift to +0.53% over three months. The trend accelerates significantly over longer durations, with six-month returns reaching +8.57% and year-to-date gains at +9.65%. Annual performance further strengthens the longer-term picture, posting a 12.88% return over one year and a 26.89% gain over three years. This pattern illustrates a divergence where short-term volatility contrasts with sustained positive momentum over the past year and beyond.

The fund carries a Moderate volatility label and a beta of 0.82, indicating that its price movements are generally less sensitive to market fluctuations than the broader benchmark. A Sharpe ratio of 0.45 suggests the fund has generated moderate risk-adjusted returns relative to the volatility it has experienced. The maximum drawdown of -23.17% highlights the potential for significant temporary losses during market downturns. This combination of a beta below 1.0 and a substantial drawdown implies that while the fund may decline less than the market in absolute percentage terms during crashes, it still experienced deep corrections. The moderate volatility rating aligns with the observed drawdown, reflecting a risk profile that balances some market insulation with exposure to sector-specific declines.

AI-generated summary based on the data on this page.

XLB Top Holdings

Holdings as of 2026-03-31 per the fund's most recent SEC N-PORT-P filing.

Market Backdrop

10-Year Treasury Yield: 4.55% (as of 2026-07-07) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 16.13 (as of 2026-07-07) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

XLB Performance History

How XLB Compares to Other Materials ETFs