XLB: Pending Chinese Stimulus Will Benefit Materials Companies

Jan. 08, 2023 5:08 AM ETMaterials Select Sector SPDR ETF (XLB)
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Macrotips Trading


  • XLB ETF provides broad exposure to materials companies.
  • Recent news that China is preparing to loosen property restrictions could power materials stocks in 2023.
  • In 2009 to 2010, during China's last big stimulus program, the XLB outperformed the SPY ETF by 34%.

Rolled metal warehouse. Many packs of metal bars on the shelves


The Materials Select Sector SPDR ETF (NYSEARCA:XLB) provides broad exposure to materials stocks. Materials look poised to take the market leadership reins from the energy sector, as China appears to be loosening property regulations and getting ready to stimulate

XLB fund characteristics

Figure 1 - XLB fund characteristics (ssga.com)

XLB sub-industry allocation

Figure 2 - XLB sub-industry allocation (ssga.com)

XLB top 10 positions

Figure 3 - XLB top 10 positions (ssga.com)

XLB historical returns

Figure 4 - XLB historical returns (morningstar.com)

SPY historical returns

Figure 5 - SPY historical returns (morningstar.com)

XLB distributions

Figure 6 - XLB distributions (Seeking Alpha)


Figure 7 - XLB vs. XLE (Author created with price chart from stockcharts.com)

XLB vs. SPY in 2009 and 2010

Figure 8 - XLB vs. SPY in 2009 and 2010 (morningstar.com)

This article was written by

Macrotips Trading profile picture
I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting, for one reason or another.Follow me on twitter for my thoughts on macro trends.

Disclosure: I/we have a beneficial long position in the shares of WPM, TDF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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