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XLC - ETF AI Analysis
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Communication Services Select Sector SPDR Fund (XLC)
Rating:74Outperform
Price Target:―
Positive Factors
Large, Established Holdings
The fund is built around major communication and technology-related companies like Meta and Alphabet, which are widely followed and have significant market presence.
Low Expense Ratio
The ETF charges a relatively low fee, which helps investors keep more of any returns over time.
Significant Fund Size
With a large amount of assets under management, the fund benefits from strong liquidity, making it easier for investors to buy and sell shares.
Negative Factors
Recent Weak Performance
The ETF has shown negative performance over the past month, three months, and year to date, which may concern investors looking for near-term strength.
Heavy Concentration in a Few Stocks
A large portion of the fund is tied up in just a handful of companies, especially Meta and Alphabet, increasing the impact if any of these stocks struggle.
Sector and U.S.-Only Focus
The fund is almost entirely invested in U.S. communication services companies, offering little diversification across other sectors or regions.
XLC vs. SPDR S&P 500 ETF (SPY)
AUM25.33B
RegionNorth America
Expense Ratio0.08%
Beta0.85
IssuerSPDR
Inception DateJun 18, 2018
Dividend Yield1.16%
Asset ClassEquity
Index TrackedS&P Communication Services Select Sector Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume10,009,955
30 Day Avg. Volume7,261,248
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
141.02Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering24
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XLC Summary
XLC is an ETF that tracks the S&P Communication Services Select Sector Index, focusing on U.S. companies in telecom, media, entertainment, and online platforms. It holds big names like Meta Platforms (Facebook) and Alphabet (Google), along with Netflix, Disney, and major phone providers such as Verizon and AT&T. Investors might consider XLC if they want simple, one-click exposure to leading communication and digital content companies for potential long-term growth and diversification. A key risk is that it is heavily concentrated in communication and internet-related stocks, so its price can swing sharply with changes in tech and media markets.
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
XLC is heavily steered by Big Tech-style communication giants, with Meta in the driver’s seat and Alphabet riding shotgun through its dual share classes. Meta has been quietly rising again, helping to prop up the fund, while Alphabet’s recent pullback makes it more of a steady, long-term engine than a short-term spark. On the telecom side, Verizon, AT&T, and T-Mobile have been climbing, giving the ETF a solid, dividend-friendly backbone. Offsetting that strength, Netflix and Disney have been losing steam, dragging on recent performance. Overall, this is a U.S.-centric bet on digital platforms and telecom networks, with a lot riding on just a handful of mega-cap names.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Meta Platforms | 19.79% | $5.13B | $1.61T | 8.05% | 76 Outperform | |
| Alphabet Class A | 10.59% | $2.75B | $3.67T | 86.50% | 85 Outperform | |
| Alphabet Class C | 8.46% | $2.19B | $3.67T | 84.06% | 82 Outperform | |
| Verizon | 5.70% | $1.48B | $213.54B | 15.83% | 81 Outperform | |
| Netflix | 5.58% | $1.45B | $398.19B | 5.95% | 73 Outperform | |
| AT&T | 5.00% | $1.30B | $191.75B | 4.98% | 71 Outperform | |
| Comcast | 4.98% | $1.29B | $108.51B | -13.08% | 74 Outperform | |
| T Mobile US | 4.91% | $1.27B | $236.21B | -17.26% | 76 Outperform | |
| Electronic Arts | 4.41% | $1.14B | $49.82B | 44.55% | 70 Outperform | |
| Warner Bros | 4.23% | $1.10B | $68.02B | 177.35% | 68 Neutral |
XLC Technical Analysis
Negative
―
Price Trends
116.79
Negative
115.73
Negative
112.51
Positive
Market Momentum
-0.10
Positive
37.80
Neutral
17.62
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 116.52, equal to the 50-day MA of 116.79, and equal to the 200-day MA of 112.51, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 17.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XLC.
XLC Peer Comparison
Comparison Results
Performance Comparison
XLC
Communication Services Select Sector SPDR Fund
114.45
18.35
19.09%
VGT
Vanguard Information Technology ETF
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―
―
XLK
Technology Select Sector SPDR Fund
―
―
―
XLF
Financial Select Sector SPDR Fund
―
―
―
XLV
Health Care Select Sector SPDR Fund
―
―
―
XLE
Energy Select Sector SPDR Fund
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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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