At a glance
XLB charges 0.08% a year, below the 0.37% average of the 8 funds most like it (the cheapest of 9). It has $8.17B in assets, the largest of that group; it paid 1.66% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +18.5% with distributions reinvested (S&P 500: +11.5%), 6th of those 9 funds; over three years it returned −10.3% a year. At its worst it fell 36.5% in the 2020 crash (S&P 500: 33.7%) and 25.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 17 months after the lows. Its ten largest positions make up 58.4% of the fund, out of 26 in all.
The short version
Materials Select Sector SPDR Fund (XLB) is a State Street index fund that holds the materials companies in the S&P 500. That list includes industrial-gas maker Linde, gold miner Newmont and paint maker Sherwin-Williams. Its 0.08% expense ratio is the lowest of nine similar materials funds. With $8.2 billion in net assets as of June 30, 2026, it is also the largest. One drawback: Linde alone made up about 14% of the fund.
Price history
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XLB +18.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XLB official prospectus, to Dec 31, 2025 | — | +9.91% | — | +6.70% | +9.80% | — |
| XLB price data to Oct 27, 2026 | +15.6% | +18.5% | -10.3% | -8.2% | +2.2% | +4.6% |
- Over the year to Oct 27, 2026, XLB returned +18.5%, 6th of 9 among similar funds.
- Its 5-year annualized return was -8.2% and its 10-year +2.2%.
- In the 2020 COVID crash it fell 36.5% and regained its old high 3.7 months after the low.
- Its worst full calendar year was 2025 (-45.2%); its best was 2009 (+46.6%).
- The deepest fall in its price history was 60.3% (May 20, 2008 to Mar 2, 2009), recovered by Sep 18, 2013.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +15.6% | — |
| 2025 | -45.2% | +9.91% |
| 2024 | -0.8% | +0.11% |
| 2023 | +11.3% | +12.46% |
| 2022 | -13.3% | -12.31% |
| 2021 | +26.3% | +27.43% |
| 2020 | +19.2% | +20.34% |
| 2019 | +22.8% | +24.18% |
| 2018 | -15.7% | -14.78% |
| 2017 | +23.1% | +23.94% |
| 2016 | +15.6% | +16.66% |
| 2015 | -9.7% | — |
| 2014 | +6.1% | — |
| 2013 | +24.6% | — |
| 2012 | +13.4% | — |
| 2011 | -11.9% | — |
| 2010 | +18.5% | — |
| 2009 | +46.6% | — |
| 2008 | -44.8% | — |
| 2007 | +21.0% | — |
| 2006 | +16.6% | — |
| 2005 | +3.0% | — |
| 2004 | +12.4% | — |
| 2003 | +36.0% | — |
| 2002 | -6.4% | — |
| 2001 | +1.1% | — |
| 2000 | -16.5% | — |
| 1999 | +22.4% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 57.5% over that stretch · deepest drop along the way 60.3%, back to its old high 54.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36.4% over that stretch · deepest drop along the way 36.5%, back to its old high 3.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 22.7% over that stretch · deepest drop along the way 25.2%, back to its old high 17.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6300 | |
| 2025 | $0.8700 | +8.1% |
| 2024 | $0.8050 | -5.8% |
| 2023 | $0.8550 | -2.3% |
| 2022 | $0.8750 | +19.0% |
| 2021 | $0.7350 | +17.6% |
| 2020 | $0.6250 | +3.3% |
| 2019 | $0.6050 | +8.0% |
| 2018 | $0.5600 | -3.4% |
| 2017 | $0.5800 | +19.6% |
| 2016 | $0.4850 | 0.0% |
| 2015 | $0.4850 | +2.1% |
| 2014 | $0.4750 | -1.0% |
| 2013 | $0.4800 | +11.6% |
| 2012 | $0.4300 | +16.2% |
| 2011 | $0.3700 | -37.3% |
| 2010 | $0.5900 | +103.4% |
| 2009 | $0.2900 | -28.4% |
| 2008 | $0.4050 | 0.0% |
| 2007 | $0.4050 | -12.7% |
| 2006 | $0.4638 | +46.1% |
| 2005 | $0.3174 | +25.5% |
| 2004 | $0.2530 | +6.1% |
| 2003 | $0.2385 | +5.2% |
| 2002 | $0.2267 | +4.1% |
| 2001 | $0.2177 | -69.1% |
| 2000 | $0.7052 | +207.0% |
| 1999 | $0.2297 |
What's inside
As of Jun 30, 2026, the fund held 26 securities; the ten largest made up 58.37% of assets.
| Holding | Weight | |
|---|---|---|
| Linde PLC | 14.06% | |
| Newmont Corp | 5.84% | |
| Freeport-McMoRan Inc | 5.30% | |
| Corteva Inc | 4.96% | |
| Sherwin-Williams Co | 4.94% | |
| Ecolab Inc | 4.73% | |
| Vulcan Materials Co | 4.72% | |
| CRH PLC | 4.67% | |
| Air Products and Chemicals Inc | 4.62% | |
| Martin Marietta Materials Inc | 4.55% | |
| Nucor Corp | 3.88% | |
| Steel Dynamics Inc | 3.73% | |
| PPG Industries Inc | 3.62% | |
| Smurfit Westrock PLC | 3.25% | |
| Packaging Corp of America | 2.82% |
By country
United States 73.36%Ireland 21.97%Jersey 2.68%Netherlands 1.82%By asset type
Stocks 99.84%By sector
Sectors of the companies held, for the 52.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.54B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.99%, -0.57%, -0.21%.
How it works
XLB tracks the Materials Select Sector Index, one of eleven Select Sector Indexes calculated by S&P Dow Jones Indices. A stock qualifies only if two things are true. It must be in the S&P 500, and it must be classed as a materials company under the Global Industry Classification Standard (GICS), a system that sorts companies into sectors. That covers chemicals, metals and mining, paper and forest products, containers and packaging, and construction materials. The index held 26 stocks as of November 30, 2025.
Weights follow a "modified market capitalization" method. Bigger companies get bigger weights, but S&P can trim any single stock's weight so the fund meets US tax-code diversification rules. The fund is still concentrated. As of June 30, 2026, Linde was 14.1% of assets, Newmont 5.8% and Freeport-McMoRan 5.3%, and the top 10 holdings came to 58.4%. The fund is registered as "non-diversified," meaning it can put more money into fewer companies than many funds.
XLB uses replication: it owns nearly every stock in the index in about the same proportions. At least 95% of its assets must be in index stocks. As of June 30, 2026, it held 0.29% in cash and one tiny materials futures contract, a type of exchange-traded contract. About 22% of assets were in companies based in Ireland, such as Linde, CRH and Smurfit Westrock. Portfolio turnover, the share of holdings replaced in a year, was 29%.
What it really costs
- XLB charges 0.08% a year, versus an average of 0.37% for the similar funds below (1st of 9, cheapest first).
- Of that, 0.03% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XLB | $8 | $26 | $45 | $103 |
In a retirement portfolio
It is a concentrated 26-stock, single-sector fund that has fallen as much as 60% from peak to trough, so it suits a small slice of a portfolio, not the core.
XLB adds a bigger stake in chemical, mining, packaging and building-materials companies than a broad stock fund holds. The cost of that is deep losses. From May 2008 to March 2009 it fell 60.3% and did not recover until September 2013, about 55 months later. In the 2020 COVID crash it fell 36.5% but recovered in under four months. In 2022 it fell 25.2% and took about 17 months to recover. Anyone who had to sell shares near the bottom of a drop like 2008 would have locked in heavy losses. Income is modest: the trailing 12-month yield was 1.66% as of October 27, 2026, paid quarterly. The 0.08% expense ratio is low. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Cost-conscious investors who want materials stocks: XLB's 0.08% expense ratio was the lowest of nine similar funds, whose average was 0.37%.
- Investors who want only large S&P 500 materials companies, such as Linde, Sherwin-Williams and Vulcan Materials, in one 26-stock fund.
- Investors adding a small sector tilt to a broad portfolio who can live through drops like the 60.3% fall in 2008–2009.
Look elsewhere if
- Investors who want less single-stock risk: Linde was 14.1% of assets and the top 10 holdings were 58.4% as of June 30, 2026.
- Income seekers: the trailing 12-month yield was 1.66% as of October 27, 2026, paid quarterly, which is modest for an income role.
- Investors wanting weight spread more evenly across companies may compare the equal-weight Invesco fund RSPM, though it charges 0.40%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XLB this fund | — | 0.08% | $8.17B | +18.5% | -10.3% |
| RSPM Invesco S&P 500 Equal Weight Materials ETF | 79% | 0.4% | $177.6M | +21.6% | +12.8% |
| FMAT Fidelity MSCI Materials Index ETF | 75% | 0.084% | $578.7M | +13.8% | +13.3% |
| VAW Vanguard Materials ETF | 72% | 0.09% | $4.55B | +13.9% | +13.3% |
| IYM iShares U.S. Basic Materials ETF | 53% | 0.39% | $1.16B | +24.9% | +16.2% |
| MXI iShares Global Materials ETF | 39% | 0.42% | $339.6M | +20.2% | +15.8% |
| PYZ Invesco Dorsey Wright Basic Materials Momen… | 34% | 0.6% | $72.1M | +6.6% | +17.0% |
| FXZ First Trust Materials AlphaDEX Fund | 30% | 0.61% | $368.2M | +24.0% | +10.5% |
Questions investors ask
Is XLB good for retirement?
XLB can fill a small, higher-risk slot in a retirement portfolio, but it is a single-sector fund, not a core holding. It fell 60.3% in the 2008–2009 crisis and took about 55 months to recover. It is cheap to hold. In the SEC's standard example, $10,000 earning 5% a year would cost about $8 after one year and $103 over 10 years. Its 1.66% trailing yield, as of October 27, 2026, is modest.
What's the difference between XLB and VAW?
Both are low-cost materials index funds, and about 72% of their holdings overlap. XLB charges 0.08% a year and VAW, Vanguard's fund, charges 0.09%. XLB is larger, with $8.2 billion in net assets as of June 30, 2026. VAW had $4.5 billion as of August 31, 2026. XLB holds only the 26 materials stocks in the S&P 500. Over the year to October 27, 2026, XLB's price return was 18.5% and VAW's was 13.9%.
Does XLB pay dividends?
Yes. XLB pays dividends quarterly, passing along the dividends paid by the companies it holds. Over the 12 months to October 27, 2026, it paid $0.86 per share, a yield of 1.66%. That is a modest income stream. Most of the fund's return has come from changes in share price, not dividends. Payouts rise and fall with the profits and dividend policies of companies such as Linde, Newmont and Sherwin-Williams.
What are XLB's top holdings?
As of June 30, 2026, Linde was by far the largest holding at 14.1% of assets. Next came Newmont at 5.8%, Freeport-McMoRan at 5.3%, then Corteva, Sherwin-Williams, Ecolab, Vulcan Materials, CRH, Air Products and Chemicals, and Martin Marietta Materials. Each of those made up about 4.5% to 5% of the fund. Together, the top 10 were 58.4% of assets, so a few companies drive much of the fund's results.
What is XLB's 10-year return?
XLB returned an average of 9.8% a year over the 10 years to December 31, 2025, according to its prospectus. Over five years it averaged 6.7% a year, and in 2025 it returned 9.91%. The ride was bumpy. Its weakest quarter was a 26.25% loss in early 2020. Its strongest was a 25.79% gain in the next quarter. It also lost 14.78% in 2018 and 12.31% in 2022.