Morningstar Rating

ETF Research and Analysis

by Alex Bryan
Suitability
Materials Select Sector SPDR ETF XLB invests in every basic materials company in the S&P 500 and weights its holdings by market capitalization. This includes firms operating in the chemicals, metals and mining, paper   Read more 

Bull Case

Some of the fund's larger holdings in the chemicals industry have shifted their focus up the value chain toward less-cyclical, higher-margin specialty chemicals.
The fund's holdings should outperform during periods of strong economic growth. Read more 

Bear Case

Infrastructure investment in China may continue to slow over the long term, which could create a headwind for the fund's holdings.
The fund's holdings operate in highly cyclical industries and have to contend with volatile input prices.
The fund excludes many of the large players in the metals and mining industry.  Read more 

Are There Viable Alternatives to Traditional Bond ETFs? 
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