Overview
Targeted exposure to the GICS Materials sector — industrial gases, specialty chemicals, mining, packaging, and construction materials companies within the S&P 500.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| LIN | Linde plc | 13.99% |
| NEM | Newmont Corporation | 8.37% |
| FCX | Freeport-McMoRan Inc. | 5.77% |
| CTVA | Corteva Inc. | 4.95% |
| SHW | Sherwin-Williams Co. | 4.92% |
| CRH | CRH plc | 4.74% |
| ECL | Ecolab Inc. | 4.72% |
| APD | Air Products & Chemicals | 4.62% |
| MLM | Martin Marietta Materials | 4.54% |
| VMC | Vulcan Materials | 4.12% |
Fund Details
Investment Thesis
Materials sits at the very start of the industrial supply chain, supplying the chemicals, metals, and aggregates that everything else is built from. That position makes the sector distinctly cyclical: it benefits from infrastructure spending, housing construction, a weaker dollar, and rising commodity prices, while suffering disproportionately in global growth slowdowns. Linde's dominant weighting gives the fund a defensive industrial-gases anchor, while Newmont and Freeport-McMoRan provide direct leverage to gold and copper prices respectively — an unusual combination of stability and commodity beta in one wrapper.
Who It's For
Cyclical and value-oriented investors positioning for infrastructure spending, industrial recovery, or a commodity upcycle. XLB also appeals to those seeking an inflation-linked equity hedge, since materials producers can often pass rising input costs through to customers. Best deployed as a tactical satellite rather than a permanent core allocation.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $48.42 | -- |
| 2017 | $60.18 | +24.3% |
| 2018 | $49.42 | -17.9% |
| 2019 | $60.18 | +21.8% |
| 2020 | $71.42 | +18.7% |
| 2021 | $88.18 | +23.5% |
| 2022 | $76.42 | -13.3% |
| 2023 | $84.18 | +10.2% |
| 2024 | $88.42 | +5.0% |
| 2025 | $92.18 | +4.3% |
| Year | Yield |
|---|---|
| 2016 | 2.12% |
| 2017 | 1.82% |
| 2018 | 2.22% |
| 2019 | 1.92% |
| 2020 | 1.68% |
| 2021 | 1.42% |
| 2022 | 1.72% |
| 2023 | 1.62% |
| 2024 | 1.52% |
| 2025 | 1.48% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $3B | -- |
| 2017 | $5B | +66.7% |
| 2018 | $4B | -20.0% |
| 2019 | $4B | +0.0% |
| 2020 | $5B | +25.0% |
| 2021 | $8B | +60.0% |
| 2022 | $6B | -25.0% |
| 2023 | $6B | +0.0% |
| 2024 | $7B | +16.7% |
| 2025 | $7B | +0.0% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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