XLB ETF: It’s Relevance to Increased Construction Activity
Denver, CO
|
June 03, 2024 02:25 PM Eastern Daylight Time
The United States has recently seen a resurgence in the construction industry. Investors aiming to benefit from this rise in construction activity may want to explore an exchange-traded fund (ETF), the Materials Select Sector SPDR Fund (XLB), which offers a snapshot of this bustling sector.
As of the latest reports, the XLB ETF's strategic holdings reflect its commitment to offering diverse exposure within this thriving industry.
Key Holdings Within XLB*
XLB encompasses a diverse portfolio of businesses operating in different domains, including chemicals, construction materials, packaging and containers, metals and mining, along with paper and forest products. There are currently 28 companies in the portfolio.
Leading the pack we have Linde PLC, a global leader in industrial gasses and engineering, at 21.45%. It is followed by Freeport-McMoRan Incorporated, a leading mining company, holding 7.19% of XLB.
Next we have Sherwin-Williams, which is renowned for their excellence in paints, coatings, and related products, at 7.08%. Following is Ecolab, a prominent player in the industrial sector, making a significant contribution to XLB at 5.76%. Finally, there is Air Products and Chemicals, another key player in industrial gasses and related equipment, with 5.27%.
This extensive coverage offers investors the opportunity to tap into numerous facets of the materials sector, proving advantageous during phases of economic expansion or heightened infrastructure investment. As the construction industry continues forward, XLB, with its 0.09% expense ratio**, remains well-positioned.
Increasing Demand for Building Materials
The steady demand for building materials has been a key factor in the growing relevance of XLB. As we continue to navigate the post-COVID-19 era, construction activities are on a significant rise, creating a surge in the need for raw materials.
Furthermore, the increasing focus on infrastructure development is adding fuel to this rising demand. The recent passage of the infrastructure bill opens up avenues for substantial investments in diverse fields such as transportation, broadband, and clean energy, thereby making XLB a potentially attractive investment option.
The Materials Select Sector SPDR Fund (XLB) provides diversified exposure to the thriving materials sector. With its current demand driven by ongoing construction projects and potential infrastructure expenditure, XLB emerges as a compelling choice for investors seeking to tap into these trends.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
*Holdings, Weightings & Assets as of 4/30/24 subject to change
**Ordinary brokerage fees apply
DISCLOSURES
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and non-diversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Media Contact:
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
Email: dan.dolan@sectorspdrs.com
Website: https://www.sectorspdrs.com/
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
SEL007537 EXP 7/31/24
Contact Details
Dan Dolan
+1 203-935-8103
Company Website
