What do sector ETFs do?

Sector ETFs track groups of companies in a specific economic sector. XLB focuses on the broad materials sector, while XME narrows into metals and mining. Both use index rules to pick and weight holdings. Investors can gain sector exposure without selecting individual stocks. Because these are ETFs, they trade on exchanges throughout the day.

What does 'not available' mean for index data?

In this comparison, the index tracked by each fund is listed as 'not available' in the source data. That means we can’t name the exact indices here. Readers should rely on fund documentation for index details. This doesn’t change the ETFs’ holdings or fees, but it limits how precisely we can describe their tracking methods.

How do the expense ratios compare?

XLB has an expense ratio of 0.08%, while XME’s is 0.35%. That’s a 0.27 percentage point difference. Lower fees reduce the drag on returns over time, all else equal. However, fees alone don’t determine outcomes—performance, tracking, and taxes also matter. Compare fees alongside what each ETF offers in terms of exposure.

How do the holdings overlap?

The top-10 holdings for XLB include NEM, FCX, STLD, and NUE. XME’s top-10 also includes NEM, FCX, STLD, and NUE. These shared names show some overlap in materials companies, especially those involved in mining and production. Yet the wider portfolios differ, as XLB spans all materials while XME focuses on metals and mining.

How do dividend yields compare?

XLB’s dividend yield is 1.72%, whereas XME’s is 0.32%. Dividend yields reflect the annual distributions relative to share price and vary by sector. Materials companies often pay higher dividends than mining firms, which may reinvest more in capital projects. Remember: ETF dividends pass through what underlying companies pay and can change over time.

What are the liquidity considerations?

Net assets are $8.1 billion for XLB and $4.4 billion for XME. Larger asset bases can support tighter bid-ask spreads and easier trading, though liquidity also depends on trading volume and market conditions. Both are SPDR ETFs, which can aid accessibility. Always check real-time spreads before trading, especially for smaller funds like XME.

Which sectors are covered?

XLB tracks the broad materials sector, encompassing chemicals, construction materials, packaging, and metals. XME focuses specifically on metals and mining, a narrower slice of materials. This means XLB offers wider diversification within materials, while XME provides concentrated exposure to mining cycles and metal prices. Their risk drivers differ accordingly.

What do inception dates mean?

XLB began on 16 Dec 1998, and XME on 19 Jun 2006. Longer histories can include more market cycles, potentially offering more data for analysis. However, past fund behaviour doesn’t guarantee future results. Compare holdings, fees, and current index rules for a fuller picture.

Which fund fits which investing goal?

XLB suits investors seeking broad materials sector exposure with a lower expense ratio and a higher dividend yield. XME fits those wanting focused metals and mining exposure despite higher fees and a lower yield. Neither is inherently better; the right choice depends on your desired sector scope, cost tolerance, and income preference.

How can beginners interpret this comparison?

Focus on four factors: fees (XLB 0.08% vs XME 0.35%), scope (XLB covers broad materials; XME covers metals and mining), income (XLB yield 1.72% vs XME 0.32%), and overlap (shared top-10 holdings NEM, FCX, STLD, NUE). Note where data isn’t available (index tracked, sector weights) and consult official fund documents.

What should I check before deciding?

Review each fund’s prospectus and the index documentation to understand holdings, weights, and rebalancing. Compare actual trading spreads, not just asset size, to assess liquidity. Consider how the sectors are affected by commodity prices and economic cycles. Finally, verify tax treatment of dividends and distributions.

Educational disclaimer

This comparison is for educational purposes only and is not financial advice. Figures come from Yahoo Finance as of 22 Sept 2026 and may change. ETF investing involves risks, including loss of capital. Always conduct independent research and consider your personal circumstances before making investment decisions.

XLB vs XME

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare XLB (Materials Select Sector SPDR Fund) and XME (S&P Metals and Mining SPDR ETF). This page details expense ratios, net assets, dividend yields, top holdings, and inception dates. Note that index tracked is not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

XLB

Metric

XME

0.08%

Expense Ratio

0.35%

1.72%

Dividend Yield

0.32%

$8.10B

Net Assets

$4.40B

Holdings

Dec 16, 1998

Inception Date

Jun 19, 2006

–

Index Tracked

–

Natural Resources

Fund Category

Natural Resources

XLB costs about $27.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	XLB	XME
NEMNewmont Corporation	7.09%	4.94%
FCXFreeport-McMoRan Inc.	5.60%	4.89%
STLDSteel Dynamics, Inc.	4.49%	4.94%
NUENucor Corporation	4.42%	4.86%

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Investment Analysis

XLB

Pros

XLB offers a low expense ratio of 0.08 per cent for a diversified materials sector fund.
The fund's high net assets of 8.1 billion dollars support strong liquidity and trading activity.
It delivers a relatively attractive dividend yield of 1.72 per cent for an equity ETF.

Considerations

Tracking the Materials Select Sector index limits exposure to non-US or broader industrial materials.
Concentration in top holdings like Linde at 11.57 per cent creates meaningful single-name risk.
Index methodology and sector weights are not available in the provided data, reducing transparency.

XME

Pros

XME provides focused exposure to metals and mining, distinct from the broader XLB materials universe.
Top holdings are more evenly weighted, with the largest position at 5.16 per cent of assets.
The fund has been established since June 2006, offering a long track record in sub-sector investing.

Considerations

Expense ratio is significantly higher at 0.35 per cent compared to broader sector ETFs.
Dividend yield is very low at 0.32 per cent, reflecting the capital-intensive nature of mining.
Net assets of 4.4 billion dollars are smaller than XLB, potentially implying lower trading volume.

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About XLB and XME

XLB (XLB)

The Materials Select Sector SPDR Fund (XLB) offers investors exposure to the materials sector, encompassing companies involved in the production and processing of chemicals, construction materials, and packaging. As an ETF, it tracks a benchmark index covering this specific industry segment, providing a convenient way to gain diversified access to 28 key holdings without picking individual stocks. Launched in 1998, the fund has grown to manage approximately USD 8.10 billion in net assets. It features a competitive expense ratio of 0.08% and currently provides a dividend yield of 1.72%. While the materials sector can be influenced by global economic cycles and commodity prices, XLB allows investors to potentially benefit from industrial growth trends. However, as with any investment, values can fluctuate, and returns are not guaranteed. This fund is suitable for those seeking sector-specific exposure within a broader portfolio strategy.

XME (XME)

S&P Metals and Mining SPDR ETF (XME) provides targeted exposure to US-listed companies in the metals and mining sector by tracking the S&P Metals & Mining Select Industry Index. The ETF concentrates on firms involved in steel, aluminium, diversified mining, and related equipment and services, making it sensitive to commodity prices, industrial demand and global growth cycles. Investors use XME to express a sector-specific view or to complement broader commodity or materials holdings, but it is typically more volatile than broad-market ETFs because of concentration and cyclical drivers. Important practical considerations include the ETF’s expense ratio, liquidity, holdings concentration and dividend policies. As with any sector play, returns can be uneven and past performance does not predict future results. This summary is educational only and not personal investment advice — suitability depends on individual goals, risk tolerance and time horizon; consult a qualified adviser if unsure.

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XLB vs XME

Fund Snapshot