XLC - ETF AI Analysis
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Communication Services Select Sector SPDR Fund (XLC)
Rating:74Outperform
Price Target:―
Positive Factors
Strong Alphabet Exposure
The fund’s large positions in Alphabet shares have shown solid gains, helping support overall performance despite broader weakness.
Low Expense Ratio
The ETF charges a relatively low fee, which means investors keep more of any returns the fund generates.
Large Asset Base
The fund manages a significant amount of assets, which can help with trading liquidity and reduce the impact of large buy or sell orders.
Negative Factors
High Concentration in a Few Stocks
A small number of companies, especially Meta and Alphabet, make up a big share of the portfolio, increasing the impact if any of them perform poorly.
Single-Sector Focus
Almost all of the fund is invested in communication services, so it may be hit hard if this sector faces a downturn.
Recent Weak Performance
The ETF’s returns over the year to date and recent three-month period have been weak, reflecting pressure on several major holdings like Meta, T-Mobile, AT&T, Comcast, and Disney.
XLC vs. SPDR S&P 500 ETF (SPY)
AUM22.05B
RegionNorth America
Expense Ratio0.08%
Beta0.90
IssuerSPDR
Inception DateJun 18, 2018
Dividend Yield1.32%
Asset ClassEquity
Index TrackedS&P Communication Services Select Sector Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume6,482,478
30 Day Avg. Volume6,434,031
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
134.41Price 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 platforms. Its top holdings include well-known names like Meta Platforms (Facebook) and Alphabet (Google), along with Disney and AT&T. Investors might consider XLC if they want simple, one-click exposure to the growth of digital communication and online content, while still spreading money across many companies in this sector. A key risk is that it is heavily concentrated in communication and internet-related stocks, so its value can rise or fall sharply with that part of the 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 essentially a bet on U.S. digital giants, with Meta and the two Alphabet share classes sitting in the driver’s seat. Meta has been rising lately, helping offset Alphabet’s more mixed, slightly lagging stretch. Around them, the fund leans on telecom heavyweights like Verizon, which has been steady to rising this year, while AT&T and T-Mobile have been more of a drag. On the entertainment side, Live Nation is adding some spark, but Disney and Warner Bros are losing steam, keeping overall returns from really breaking out.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Meta Platforms | 16.30% | $3.49B | $1.42T | -25.77% | 76 Outperform | |
| Alphabet Class A | 10.45% | $2.24B | $4.36T | 88.30% | 85 Outperform | |
| Alphabet Class C | 8.43% | $1.81B | $4.36T | 87.76% | 82 Outperform | |
| AT&T | 4.86% | $1.04B | $159.32B | -16.22% | 71 Outperform | |
| Verizon | 4.78% | $1.02B | $195.46B | 9.16% | 81 Outperform | |
| Electronic Arts | 4.67% | $1.00B | $52.97B | 33.60% | 70 Outperform | |
| Live Nation Entertainment | 4.59% | $984.80M | $40.52B | 19.15% | 69 Neutral | |
| Take-Two | 4.57% | $980.53M | $45.42B | 10.13% | 53 Neutral | |
| T Mobile US | 4.55% | $975.89M | $185.26B | -27.19% | 76 Outperform | |
| Netflix | 4.53% | $971.33M | $298.60B | -38.11% | 73 Outperform |
XLC Technical Analysis
Negative
―
Price Trends
110.70
Negative
112.60
Negative
113.80
Negative
Market Momentum
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 109.80, equal to the 50-day MA of 110.70, and equal to the 200-day MA of 113.80, indicating a bearish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
108.24
1.42
1.33%
VGT
Vanguard Information Technology ETF
―
―
―
XLK
Technology Select Sector SPDR Fund
―
―
―
XLF
Financial Select Sector SPDR Fund
―
―
―
XLV
Health Care Select Sector SPDR Fund
―
―
―
VNQ
Vanguard Real Estate ETF
―
―
―
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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