XLC - ETF AI Analysis
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Communication Services Select Sector SPDR Fund (XLC)
Rating:73Outperform
Price Target:―
Positive Factors
Strong AUM Base
The fund manages a large pool of assets, suggesting it is widely used and offers good trading liquidity for investors.
Low Expense Ratio
The ETF charges relatively low annual fees, which helps investors keep more of their returns over time.
Several Strong Top Holdings
Key positions such as Alphabet, Echostar, Charter, and Live Nation have shown strong recent performance, supporting the fund’s overall results.
Negative Factors
High Sector Concentration
Almost all of the fund is invested in the communication services sector, making it sensitive to downturns in that single industry.
Limited Geographic Diversification
With nearly all holdings in U.S. companies, the ETF offers little exposure to international markets.
Mixed Performance Among Top Holdings
Several major positions, including Disney, Take-Two, Omnicom, and Comcast, have shown weak recent performance, which can drag on the fund’s returns.
XLC vs. SPDR S&P 500 ETF (SPY)
AUM25.27B
RegionNorth America
Expense Ratio0.08%
Beta0.87
IssuerSPDR
Inception DateJun 18, 2018
Dividend Yield1.21%
Asset ClassEquity
Index TrackedS&P Communication Services Select Sector Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume4,638,182
30 Day Avg. Volume6,441,360
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
140.63Price 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 follows the S&P Communication Services Select Sector Index, focusing on U.S. companies in telecom, media, entertainment, and online services. It holds big names like Meta Platforms (Facebook) and Alphabet (Google), along with Disney and Comcast, giving you a simple way to invest in the growing demand for digital content and connectivity. Investors might choose XLC for potential growth and to add sector-specific exposure to their portfolio. However, it is heavily concentrated in communication and internet-related stocks, so its price can swing more than the overall market.
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 tilted toward U.S. communication giants, with Alphabet’s twin share classes doing much of the heavy lifting as they continue to rise on the back of AI and cloud momentum. Meta, however, has been losing steam, acting as a noticeable drag despite its hefty weight. In the entertainment lane, Live Nation is humming along, while Disney and Warner Bros. look more mixed as they juggle streaming and content challenges. Overall, the fund is a concentrated bet on U.S. digital platforms and media names rather than a broad global mix.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Meta Platforms | 13.33% | $3.34B | $1.55T | -2.68% | 76 Outperform | |
| Alphabet Class A | 10.07% | $2.52B | $4.62T | 127.32% | 85 Outperform | |
| Alphabet Class C | 8.05% | $2.02B | $4.62T | 123.70% | 82 Outperform | |
| Take-Two | 4.83% | $1.21B | $42.14B | 1.14% | 53 Neutral | |
| Walt Disney | 4.68% | $1.17B | $178.86B | -6.12% | 75 Outperform | |
| Echostar | 4.63% | $1.16B | $35.99B | 528.54% | 57 Neutral | |
| Live Nation Entertainment | 4.62% | $1.16B | $38.53B | 14.16% | 69 Neutral | |
| Warner Bros | 4.24% | $1.06B | $67.77B | 200.33% | 68 Neutral | |
| Omnicom Group | 4.21% | $1.05B | $21.36B | 2.46% | 73 Outperform | |
| Electronic Arts | 4.17% | $1.04B | $50.39B | 36.82% | 70 Outperform |
XLC Technical Analysis
Negative
―
Price Trends
114.78
Positive
115.64
Negative
114.70
Positive
Market Momentum
0.14
Positive
46.82
Neutral
34.07
Neutral
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 116.27, equal to the 50-day MA of 114.78, and equal to the 200-day MA of 114.70, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 34.07 is Neutral, 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
115.46
14.89
14.81%
VGT
Vanguard Information Technology ETF
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XLK
Technology Select Sector SPDR Fund
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―
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XLF
Financial Select Sector SPDR Fund
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XLE
Energy Select Sector SPDR Fund
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XLV
Health Care 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.
DisclaimerThis 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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