Materials Select Sector SPDR Fund

XLB

Market cap $5.17B

Materials Select Sector SPDR ETF continues to underperform the S&P 500, rising just 4% over the past year despite sector tailwinds. XLB maintains a decent valuation with a 16.9x P/E and attractive 1.48x PEG, but technical indicators and weak momentum limit upside potential. The ETF's high concentration in top holdings and cyclical mid-cap exposure add risk, especially if economic growth slows.

Matt Camuso, Head of ETF Solutions at BNY Investments, says there are $13 trillion of assets in ETFs. That's compared to $5 trillion a year prior.

The stock market is historically expensive. Even as a recession is more and more plausible in the near future. Fortunately, many defensive dividend payers remain opportunistic.

Designed to provide broad exposure to the Materials - Broad segment of the equity market, the Materials Select Sector SPDR ETF (XLB) is a passively managed exchange traded fund launched on December 16, 1998.

'Fast Money' guest trader Katie Stockton talks technical indicators she is following in materials and energy.

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 December 16, 1998.

A diversified, funds-only portfolio can deliver reliable 6-7% income and market-matching growth, ideal for retirees seeking simplicity and peace of mind. Asset allocation spans dividend growth, bonds, real estate, energy, covered calls, utilities, commodities, preferreds, and specialty funds for broad diversification. Fund selection prioritizes low fees, competent management, and minimal leverage, balancing income, growth, and capital preservation across market cycles.

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Victoria Greene, G Squared Private Wealth CIO, joins 'The Exchange' to discuss being bullish on materials and tailwinds she sees for the sector.

I am downgrading XLB from buy to hold due to disappointing performance and technical weakness despite stable valuations. XLB's lackluster momentum, high concentration in top holdings, and sensitivity to a potential US dollar rebound increase risk. Valuation remains fair, but the ETF's earnings multiple and growth exposure do not offer compelling value versus the S&P 500.