Materials sector shows mixed valuation; chemicals lag while construction and packaging are overvalued.

The materials sector reveals a mixed valuation landscape, with construction materials and packaging moderately overvalued, while the chemicals segment shows the weakest combination of value and quality scores. The State Street Materials Select Sector SPDR ETF (XLB) is heavily concentrated in chemicals, which make up 49% of its assets, and its top 10 holdings account for nearly 59%. Historically, XLB outperformed the S&P 500 from 1999 through 2023 but has significantly lagged in the past three years. In September, five material stocks were identified as cheaper than their peers, suggesting potential investment opportunities.

As of Sep 19, 2026 14:01 WIB, the State Street Materials Select Sector SPDR ETF (XLB) trades at USD 49.99 on Pluang, showing a 1-day decline of 1.42%. The fund holds a market capitalization of $8.23 billion with a trading volume of 8,946,107 shares. Investors on Pluang typically hold XLB for about 67 days, highlighting moderate trading activity despite recent underperformance in the sector.