FMAT vs. XLB

Last updated Jun 24, 2026

FMAT (Fidelity MSCI Materials Index ETF) and XLB (Materials Select Sector SPDR ETF) are both Materials funds - FMAT tracks the MSCI USA IMI Materials Index while XLB tracks the Materials Select Sector Index. Both are passively managed. Over the past 10 years, FMAT returned 10.45%/yr vs 10.44%/yr for XLB. With a 0.98 correlation, they move nearly in lockstep. FMAT charges 0.08%/yr vs 0.13%/yr for XLB.

Performance

FMAT vs. XLB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Materials Index ETF (FMAT) and Materials Select Sector SPDR ETF (XLB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FMAT achieves a 11.09% return, which is significantly lower than XLB's 13.09% return. Both investments have delivered pretty close results over the past 10 years, with FMAT having a 10.45% annualized return and XLB not far behind at 10.44%.

FMAT

• 1D: -1.81%
• 1M: 0.83%
• YTD: 11.09%
• 6M: 9.58%
• 1Y: 20.54%
• 3Y*: 11.22%
• 5Y*: 6.71%
• 10Y*: 10.45%

XLB

• 1D: -1.45%
• 1M: 1.53%
• YTD: 13.09%
• 6M: 12.10%
• 1Y: 19.16%
• 3Y*: 10.60%
• 5Y*: 6.47%
• 10Y*: 10.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FMAT vs. XLB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FMAT Fidelity MSCI Materials Index ETF	11.09%	12.11%	0.47%	13.71%	-11.54%	27.45%	19.57%	23.35%	-17.40%	23.51%
XLB Materials Select Sector SPDR ETF	13.09%	9.94%	0.15%	12.46%	-12.30%	27.44%	20.46%	24.13%	-14.88%	24.01%

Correlation

The correlation between FMAT and XLB is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.98

The correlation between FMAT and XLB has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

FMAT vs. XLB - Sectors Allocation Comparison

Sectors	FMAT	XLB
Basic Materials	89.8%	87.3%
Consumer Cyclical	8.6%	12.7%
Energy	0.5%	-
Healthcare	0.5%	-
Consumer Defensive	0.1%	-
Technology	0.1%	-
Industrials	0.1%	1.5%
Communication Services	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FMAT vs. XLB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FMAT

FMAT Risk / Return Rank: 32
FMAT Sharpe Ratio Rank: 32
FMAT Sortino Ratio Rank: 32
FMAT Omega Ratio Rank: 30
FMAT Calmar Ratio Rank: 32
FMAT Martin Ratio Rank: 34

XLB

XLB Risk / Return Rank: 31
XLB Sharpe Ratio Rank: 32
XLB Sortino Ratio Rank: 31
XLB Omega Ratio Rank: 29
XLB Calmar Ratio Rank: 32
XLB Martin Ratio Rank: 33

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FMAT vs. XLB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Materials Index ETF (FMAT) and Materials Select Sector SPDR ETF (XLB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FMAT	XLB	Difference
Sharpe ratio: Return per unit of total volatility	1.12	1.10	+0.02
Sortino ratio: Return per unit of downside risk	1.65	1.64	+0.01
Omega ratio: Gain probability vs. loss probability	1.20	1.19	0.00
Calmar ratio: Return relative to maximum drawdown	1.53	1.55	-0.02
Martin ratio: Return relative to average drawdown	4.86	4.73	+0.12

FMAT vs. XLB - Sharpe Ratio Comparison

The current FMAT Sharpe Ratio is 1.12, which is comparable to the XLB Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of FMAT and XLB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FMAT vs. XLB - Drawdown Comparison

The maximum FMAT drawdown since its inception was -41.11%, smaller than the maximum XLB drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for FMAT and XLB.

Drawdown Indicators

	FMAT	XLB	Difference
Max Drawdown Largest peak-to-trough decline	-41.11%	-59.83%	+18.72%
Max Drawdown (1Y) Largest decline over 1 year	-13.48%	-12.38%	-1.10%
Max Drawdown (3Y) Largest decline over 3 years	-23.17%	-23.17%	0.00%
Max Drawdown (5Y) Largest decline over 5 years	-25.40%	-24.72%	-0.68%
Max Drawdown (10Y) Largest decline over 10 years	-41.11%	-37.27%	-3.84%
Current Drawdown Current decline from peak	-5.63%	-4.35%	-1.28%
Average Drawdown Average peak-to-trough decline	-6.87%	-10.82%	+3.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.24%	4.06%	+0.18%

Volatility

FMAT vs. XLB - Volatility Comparison

Fidelity MSCI Materials Index ETF (FMAT) has a higher volatility of 6.66% compared to Materials Select Sector SPDR ETF (XLB) at 6.15%. This indicates that FMAT's price experiences larger fluctuations and is considered to be riskier than XLB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FMAT	XLB	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.66%	6.15%	+0.51%
Volatility (6M) Calculated over the trailing 6-month period	14.85%	13.64%	+1.21%
Volatility (1Y) Calculated over the trailing 1-year period	18.48%	17.51%	+0.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.69%	19.02%	+0.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.22%	20.67%	+0.55%

FMAT vs. XLB - Expense Ratio Comparison

FMAT has a 0.08% expense ratio, which is lower than XLB's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FMAT vs. XLB - Dividend Comparison

FMAT's dividend yield for the trailing twelve months is around 1.43%, less than XLB's 1.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMAT Fidelity MSCI Materials Index ETF	1.43%	1.64%	1.68%	1.71%	2.00%	1.44%	1.73%	1.89%	2.18%	1.53%	1.78%	2.16%
XLB Materials Select Sector SPDR ETF	1.67%	1.92%	1.92%	2.00%	2.26%	1.62%	1.72%	1.98%	2.20%	1.66%	1.95%	2.24%

Frequently Asked Questions

Can I hold both FMAT and XLB in my portfolio?

With a correlation of 0.98, FMAT and XLB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FMAT or XLB?

FMAT has higher volatility (6.66%) compared to XLB (6.15%). In terms of maximum drawdown, FMAT dropped -41.11% vs XLB's -59.83%.

Which ETF is better, FMAT or XLB?

On 10-year performance, FMAT leads with 10.45% vs 10.44% for XLB. On fees, FMAT is cheaper at 0.08% per year. On volatility, XLB has been the lower-risk option at 6.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FMAT or XLB?

Over the 10-year period, FMAT has performed better with a 10.45% return vs 10.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FMAT or XLB?

FMAT is cheaper with a 0.08% expense ratio, compared with 0.13% for XLB.

Which ETF pays a higher dividend yield, FMAT or XLB?

XLB has the higher dividend yield at 1.67%, compared with 1.43% for FMAT.

What is the main difference between FMAT and XLB?

FMAT tracks MSCI USA IMI Materials Index, while XLB tracks Materials Select Sector Index. They also come from different issuers: Fidelity and State Street. Their fees differ too: 0.08% for FMAT and 0.13% for XLB.

Which has better risk-adjusted returns?

FMAT currently has the higher Sharpe Ratio (1.12 vs 1.10), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.