State Street Materials Select Sector SPDR ETF

XLB

Market cap $7.3B

Family offices poured more than $3 billion into tech, media, and telecom companies. But materials attracted the most capital—$4.8 billion.

The impact of AI capex, the geopolitical race for resources, rising defense spend and a housing shortage in America all argue in favor of exposure of materials in conjunction with tech for a “barbell” approach to risk

Europe's embattled chemicals ​industry is getting an unexpected lift from the Iran war, as supply disruptions raise costs ‌for Asian rivals and customers prioritise reliability over price.

Japan Prime Minister Sanae Takaichi is set to hold talks in Canberra ​on Monday with Australian counterpart Anthony Albanese, ‌at which energy security and rare earths cooperation are likely to be high on the agenda.

Investing in technology is now essential as tech sector earnings and profit margins surge, driven by AI infrastructure capex and data center buildouts. Despite high growth and profitability, the tech sector trades at only a modest premium to the S&P 500, with a PEG ratio of 0.8x. Dividend-focused ETFs like TDIV and TDVI offer exposure to tech's upside while providing income, making them attractive for income-seeking investors.

ISM shows strongest expansion since 2022 — but inflation is a big problem

Strong Q1 earnings momentum continues as S&P 500 firms beat estimates. Tech, Energy lead growth; full-year 2026 outlook stays robust.

State Street Materials Select Sector SPDR ETF remains rated Hold, with valuation no longer compelling after a 20% gain since November 2025. XLB's P/E has risen to 19x, while its sector exposure is highly concentrated and increasingly sensitive to geopolitical and macroeconomic shifts. Technical signals are mixed: XLB recently failed at previous highs, with the 50dma turning down, but the primary trend remains bullish above the 200dma.

The State Street Materials Select Sector SPDR ETF (XLB) was launched on December 16, 1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Materials - Broad segment of the equity market.

Whenever a market pro makes a bold call on television, it can be tempting to try to follow him to get a leg up over the crowd.