Core Insights - The State Street Materials Select Sector SPDR ETF (XLB) is a passively managed ETF launched on December 16, 1998, providing broad exposure to the Materials - Broad segment of the equity market [1][3] - The ETF has amassed over $5.26 billion in assets, making it one of the largest in its category [3] - XLB has a low expense ratio of 0.08%, making it the least expensive product in the space, with a 12-month trailing dividend yield of 1.91% [4] Fund Details - XLB seeks to match the performance of the Materials Select Sector Index, which represents the materials sector of the S&P 500 Index [3] - The ETF has a heavy allocation in the Materials sector, approximately 100% of the portfolio [5] - The top holding, Linde Plc (LIN), accounts for about 16.74% of total assets, with the top 10 holdings making up approximately 63.1% of total assets under management [6] Performance Metrics - Year-to-date, XLB has increased by roughly 8.48%, and it is up approximately 3.71% over the last year [7] - The fund has traded between $37.135 and $46.305 in the past 52 weeks, with a beta of 1.01 and a standard deviation of 16.82% over the trailing three-year period, indicating medium risk [7] Investment Alternatives - XLB holds a Zacks ETF Rank of 1 (Strong Buy), based on expected asset class return, expense ratio, and momentum [8] - Other ETFs in the space include SPDR S&P Global Natural Resources ETF (GNR) and FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR), with GNR having $3.70 billion in assets and GUNR having $5.62 billion [10]

Core Viewpoint - Tech stocks have significantly contributed to market gains, but there is a shift towards cyclical stocks as attractive investment opportunities for the upcoming year [1] Group 1: Investment Strategy - The chief market strategist at Bank of America recommends a barbell approach, balancing investments between tech and cyclical stocks [2] - Cyclical stocks are expected to rebound as the economy recovers, with sectors like industrials, materials, and financials highlighted for potential opportunities [2] Group 2: Economic Outlook - Despite a softening labor market with rising layoffs, the job market is adjusting rather than entering a downturn, indicating resilience [3][4] - Key drivers for economic growth in 2026 include continued consumer spending, capital investments, a weaker dollar benefiting exports, and global growth [5] Group 3: Monetary Policy - Anticipated fiscal and monetary stimulus, including two Federal Reserve interest rate cuts in 2026, is expected to stimulate economic activity [6] Group 4: Market Performance - Year-to-date returns for industrials, materials, and financials sectors are 17.4%, 4.5%, and 10.8% respectively, compared to a 16.4% rise in the S&P 500 [7] - Cyclical stocks have outperformed defensive stocks, leading to a valuation premium for US cyclical stocks [8]