The materials sector shows valuations close to an 11-year average, with chemicals, construction materials, and packaging fairly valued. Metals and mining appear overvalued but maintain strong quality metrics. The iShares Global Materials ETF offers diversified global exposure with a significant mining/metals focus and lower company-specific risk compared to the State Street Materials Select Sector SPDR ETF (XLB). While the MXI ETF trades at a lower price-to-earnings ratio and has slightly better cash flow growth than XLB, it has underperformed since inception. Investors might find value in certain materials stocks that are cheaper than their peers as of October. This analysis is part of a monthly series providing top-down sector insights based on fundamental and momentum metrics.
The article discusses the valuation and performance of materials ETFs including XLB. On Pluang, XLB trades at USD 50.90 with a 1-day gain of 0.67% and a market cap of $8.00B. These figures are current as of Oct 17, 2026 20:21 WIB.
