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XLC - ETF AI Analysis
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Communication Services Select Sector SPDR Fund (XLC)
Rating:75Outperform
Price Target:
$131.00
Positive Factors
Strong Top Holdings
Several key positions, including Meta, Alphabet, and Netflix, have delivered strong year-to-date performance, boosting the fund’s returns.
Low Expense Ratio
The ETF charges a very low expense ratio, making it cost-effective for investors compared to similar funds.
Healthy Asset Base
With significant assets under management, the fund benefits from strong investor confidence and liquidity.
Negative Factors
Sector Concentration Risk
The ETF is heavily focused on the communication services sector, leaving it vulnerable to downturns in this industry.
Geographic Over-Concentration
Nearly all holdings are U.S.-based companies, limiting diversification across global markets.
Mixed Short-Term Performance
The fund has shown weak one-month performance, which could concern investors seeking consistent short-term gains.
XLC vs. SPDR S&P 500 ETF (SPY)
AUM26.62B
RegionNorth America
Expense Ratio0.08%
Beta0.90
IssuerSPDR
Inception DateJun 18, 2018
Dividend Yield1.04%
Asset ClassEquity
Index TrackedS&P Communication Services Select Sector Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume4,823,124
30 Day Avg. Volume5,784,453
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
135.16Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering26
XLC Summary
The Communication Services Select Sector SPDR Fund (XLC) is an ETF that focuses on companies in the communication services sector, including telecommunications, media, entertainment, and interactive media services. It tracks the S&P Communication Services Select Sector Index and includes well-known companies like Meta Platforms (Facebook) and Alphabet (Google). Investors might consider XLC for potential growth opportunities driven by increasing demand for digital content and connectivity. However, new investors should be aware that this ETF is heavily dependent on the performance of tech and media companies, which can be volatile and sensitive to market trends.
How much will it cost me?The expense ratio for the Communication Services Select Sector SPDR Fund (XLC) is 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than the average expense ratio for ETFs because it is passively managed, tracking an index rather than relying on active management.
What would affect this ETF?The XLC ETF could benefit from increasing demand for digital content, advancements in technology, and growth in interactive media services, especially as companies like Meta and Alphabet lead innovation in these areas. However, it may face challenges from regulatory scrutiny on major tech firms, economic slowdowns affecting advertising revenue, or rising interest rates that could impact the broader market. Its focus on U.S.-based communication services makes it sensitive to domestic economic and policy changes.
XLC Top 10 Holdings
The Communication Services Select Sector SPDR Fund (XLC) is leaning heavily on tech and media giants like Meta Platforms and Alphabet, which are steady performers, with Alphabet showing strong momentum thanks to its advancements in AI and cloud services. Netflix and Warner Bros. Discovery are adding a spark with rising stock trends, fueled by content strategies and subscriber growth. However, Disney and T-Mobile are losing steam, with mixed results and bearish signals. With nearly all holdings rooted in U.S.-based communication services, this ETF is a concentrated bet on the digital and entertainment sectors.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Meta Platforms | 15.21% | $4.10B | $1.89T | 26.66% | 82 Outperform | |
| Alphabet Class A | 9.51% | $2.56B | $3.24T | 57.63% | 82 Outperform | |
| Alphabet Class C | 7.65% | $2.06B | $3.24T | 56.85% | 83 Outperform | |
| Netflix | 5.33% | $1.44B | $467.16B | 45.17% | 69 Neutral | |
| Warner Bros | 5.30% | $1.43B | $51.97B | 178.01% | 69 Neutral | |
| Electronic Arts | 4.52% | $1.22B | $50.12B | 37.55% | 75 Outperform | |
| Walt Disney | 4.46% | $1.20B | $200.74B | 16.14% | 77 Outperform | |
| Take-Two | 4.46% | $1.20B | $46.41B | 55.02% | 60 Neutral | |
| Comcast | 4.26% | $1.15B | $108.11B | -30.40% | 75 Outperform | |
| T Mobile US | 4.23% | $1.14B | $246.06B | -2.68% | 73 Outperform |
XLC Technical Analysis
Positive
―
Price Trends
115.19
Positive
110.82
Positive
104.29
Positive
Market Momentum
0.25
Negative
53.21
Neutral
83.91
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 115.55, equal to the 50-day MA of 115.19, and equal to the 200-day MA of 104.29, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 83.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLC.
XLC Peer Comparison
Comparison Results
Performance Comparison
XLC
Communication Services Select Sector SPDR Fund
116.29
24.50
26.69%
VGT
Vanguard Information Technology ETF
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XLK
Technology Select Sector SPDR Fund
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XLF
Financial Select Sector SPDR Fund
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XLV
Health Care Select Sector SPDR Fund
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VNQ
Vanguard Real Estate ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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