Historical data indicate XLB is one of the two best sector SPDR ETFs to own in December and January. Plus, cyclical sectors, of which materials certainly is one, often perform well as interest rates rise.

“Among the companies owned by XLB that will report earnings this week are LyondellBasell Industries NV, its seventh-largest holding,” notes Bloomberg.

Rivals to XLB include the Fidelity MSCI Materials Index ETF (NYSEArca: FMAT) and the Vanguard Materials ETF (NYSEArca: VAW).

For more information on the materials sector, visit our materials category.

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