The Materials Select Sector SPDR Fund (NYSEARCA: XLB) has provided decent returns of 9.8% year-to-date (YTD) in 2025, outperforming several other sector-focused exchange-traded funds (ETFs) and the broader market as represented by the S&P 500.
Materials stocks as a group have faced uncertainty in recent months, owing to the sector’s cyclical nature, ongoing concerns about the U.S. economy, and a shifting global tariff environment.
