XLB: State Street Materials Select Sector SPDR ETF
State Street Materials Select Sector SPDR ETF (XLB) is an exchange-traded fund (ETF) run by SPDR (State Street). This fund owns stocks of the materials companies in the S&P 500, such as makers of chemicals, metals, paper and packaging. It charges 0.08% a year. From December 1998 to October 2026 it returned about 8.2% a year, and its worst drop was −59.8%.
Written by the Tactfolio research team. Fund facts checked October 16, 2026. Prices through October 16, 2026.
- Yearly fee
- 0.08%
- about $8 on $10,000
- Return per year
- 8.2%
- since December 1998
- Worst drop
- −59.8%
- since 1998
- Started trading
- Dec 1998
- SPDR (State Street)
Key points
- Expense ratio: 0.08% a year (about $8 on $10,000).
- Started trading on December 16, 1998.
- Worst drop since 1998: −59.8%.
- 1 Tactfolio classic strategy holds it.
What does XLB hold?#
This fund owns stocks of the materials companies in the S&P 500, such as makers of chemicals, metals, paper and packaging. It held 24 companies in mid October 2026, which is a small group. Its value goes up and down with that one part of the stock market.
It tracks the Materials Select Sector Index. It had 24 holdings as of October 15, 2026, according to SPDR (State Street).
| Fact | XLB |
|---|---|
| Full name | State Street Materials Select Sector SPDR ETF |
| Issuer | SPDR (State Street) |
| Expense ratio | 0.08% a year |
| Started trading | December 16, 1998 |
| Tracks | Materials Select Sector Index |
| Type | US stocks, ETF |
| Holdings | 24 holdings as of October 15, 2026 |
| Facts checked | October 16, 2026 on the SPDR (State Street) fund page |
What is the XLB expense ratio?#
XLB charges 0.08% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.08% fee comes to about $8 a year.
You never get a bill for it. The fund takes the fee out of its own value a little each day.
How has XLB done since 1998?#
From December 1998 to October 2026, XLB returned about 8.2% a year. Say you put in $10,000 at the start. It would have been worth about $89,796 at the end, with every dividend reinvested.
| Measure | XLB |
|---|---|
| Total return | 798.0% |
| Return per year (CAGR) | 8.2% |
| Worst drop from a high | −59.8% |
| Volatility (how much it swings) | 23.5% |
| Last 12 months | 17.8% |
| Last 3 years, per year | 11.2% |
| Last 5 years, per year | 6.0% |
| Last 10 years, per year | 10.4% |
Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.
XLB returns by year#
| Year | XLB return |
|---|---|
| 2026 (part of the year) | 13.7% |
| 2025 | 9.9% |
| 2024 | 0.1% |
| 2023 | 12.5% |
| 2022 | −12.3% |
| 2021 | 27.4% |
| 2020 | 20.5% |
| 2019 | 24.1% |
| 2018 | −14.9% |
| 2017 | 24.0% |
| 2016 | 16.8% |
| 2015 | −8.7% |
| 2014 | 7.2% |
| 2013 | 26.0% |
| 2012 | 14.7% |
| 2011 | −10.9% |
| 2010 | 20.5% |
| 2009 | 48.2% |
| 2008 | −44.0% |
| 2007 | 22.1% |
| 2006 | 18.4% |
| 2005 | 4.1% |
| 2004 | 13.5% |
| 2003 | 37.4% |
| 2002 | −5.3% |
| 2001 | 2.1% |
| 2000 | −16.2% |
| 1999 | 22.9% |
| 1998 (part of the year) | 5.3% |
What was XLB’s worst drop?#
A drawdown is how far a fund falls from its last high point. XLB’s worst fall was −59.8%, from May 20, 2008 to March 2, 2009. It got back to that high on May 8, 2013.
The chart shows how far below its last high the fund was on each day. Big drops are normal for some funds. They matter because selling during a drop locks in the loss.
Which Tactfolio strategies hold XLB?#
One classic strategy holds XLB at least some of the time. Each is a set of written rules you can open, test and copy.
- Faber sector rotation (the three strongest US sectors), by Mebane Faber, 2010
How does XLB compare with similar ETFs?#
Funds that can stand in for XLB:
- VAW: Vanguard Materials ETF, 0.09% a year
- XLI: State Street Industrial Select Sector SPDR ETF, 0.08% a year
- VIS: Vanguard Industrials ETF, 0.09% a year
- XLE: State Street Energy Select Sector SPDR ETF, 0.08% a year
See all 5 XLB alternatives, compared on the same dates as XLB.
Test XLB in your own rules#
Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add XLB, and see how a rule such as “hold it only above its 200-day average” would have done. Strategies run on daily prices and hold US stocks and ETFs only.
The details#
Prices come from Tactfolio’s stored daily prices for XLB. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns.
Fund facts come from SPDR (State Street). We checked them on October 16, 2026. Read what a backtest simulates and how to read drawdown and CAGR for more on these measures.
Common questions#
What is the expense ratio of XLB?#
XLB charges 0.08% a year, according to SPDR (State Street) as of October 16, 2026. That is about $8 a year for every $10,000 you hold.
When did XLB start trading?#
XLB started trading on December 16, 1998. It is run by SPDR (State Street).
What does XLB track?#
XLB tracks the Materials Select Sector Index. This fund owns stocks of the materials companies in the S&P 500, such as makers of chemicals, metals, paper and packaging.
How much has XLB returned per year?#
From December 1998 to October 2026, XLB returned about 8.2% a year with dividends reinvested. Its worst drop was −59.8%. Past returns do not tell you what it will do next.
Which strategies use XLB?#
One of Tactfolio’s classic strategies hold XLB, including Faber sector rotation (the three strongest US sectors).