XSW - ETF AI Analysis
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SPDR S&P Software & Services ETF (XSW)
Rating:65Neutral
Price Target:―
Positive Factors
Balanced Top Holdings
The ETF’s largest positions are spread fairly evenly across many stocks, which helps reduce the impact of any single company’s performance on the fund.
Exposure to Growing Software Industry
With most assets in technology and software-related companies, the fund is positioned to benefit if the software and services sector continues to grow over time.
Recent Short-Term Momentum
The ETF has shown strong gains over the last three months and solid performance over the past month, indicating improving short-term momentum despite a weak year-to-date result.
Negative Factors
Weak Year-to-Date Performance
The fund’s overall performance so far this year has been negative, which may concern investors looking for steadier returns.
Several Lagging Top Holdings
Many of the largest positions, including companies like Rapid7, Netskope, Yext, Amplitude, Bill.com, and CCC Intelligent Solutions, have delivered weak returns this year, weighing on the ETF’s results.
High Concentration in U.S. Tech Stocks
Almost all assets are invested in U.S. companies and heavily tilted toward technology, increasing sensitivity to downturns in the U.S. tech sector and limiting global diversification.
XSW vs. SPDR S&P 500 ETF (SPY)
AUM451.19M
RegionNorth America
Expense Ratio0.35%
Beta1.32
IssuerSPDR
Inception DateSep 28, 2011
Dividend YieldN/A
Asset ClassEquity
Index TrackedS&P Software & Services Select Industry
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume50,795
30 Day Avg. Volume59,523
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
216.87Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering133
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XSW Summary
XSW is the SPDR S&P Software & Services ETF, which follows the S&P Software & Services Select Industry Index. It focuses mainly on U.S. technology companies that build software or provide IT services, including names like Rapid7 and Qualys. Investors might consider XSW if they want growth potential from trends like cloud computing, cybersecurity, and digital tools, while still getting diversification across many different software firms instead of picking just one stock. A key risk is that it is heavily concentrated in tech, so its price can rise or fall sharply with changes in the technology sector and overall stock market.
How much will it cost me?The SPDR S&P Software & Services ETF (XSW) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This expense ratio is slightly higher than average for ETFs because it tracks a specialized sector and is not passively managed like broad market index funds.
What would affect this ETF?The SPDR S&P Software & Services ETF (XSW) could benefit from ongoing advancements in cloud computing, cybersecurity, and AI, as these technologies drive demand for software solutions and digital transformation. However, rising interest rates or economic slowdowns could negatively impact the growth-focused companies in this ETF, especially those with higher debt or reliance on venture capital. Its heavy exposure to U.S.-based technology firms makes it sensitive to regulatory changes or shifts in tech sector sentiment.
XSW Top 10 Holdings
XSW is a pure play on U.S. software and services, with a heavy tilt toward cybersecurity and cloud-driven names. Palo Alto Networks has been a key engine for the fund, rising steadily and giving the portfolio some blue-chip security exposure. Varonis and ACI Worldwide are also helping, with improving trends that add stability. On the flip side, Rapid7, Netskope, Bill.com, and CCC Intelligent Solutions are lagging as profitability worries and choppy trading weigh on sentiment. Overall, performance is being driven by a handful of rising security leaders while weaker SaaS names drag at the margins.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Porch Group | 1.06% | $4.78M | $1.64B | 24.96% | 57 Neutral | |
| Blackbaud | 1.04% | $4.70M | $1.94B | -31.51% | 70 Outperform | |
| Netskope, Inc. | 1.02% | $4.63M | $5.09B | ― | 47 Neutral | |
| Yext | 0.99% | $4.47M | $547.35M | -29.26% | 63 Neutral | |
| RingCentral | 0.99% | $4.47M | $4.64B | 140.86% | 63 Neutral | |
| Everforth | 0.96% | $4.36M | $1.17B | -41.66% | 66 Neutral | |
| Bill.com Holdings | 0.96% | $4.34M | $4.49B | 11.37% | 74 Outperform | |
| Q2 Holdings | 0.95% | $4.30M | $3.80B | -20.70% | 75 Outperform | |
| Intapp | 0.94% | $4.27M | $2.52B | -17.41% | 63 Neutral | |
| Rapid7 | 0.92% | $4.17M | $644.92M | -50.92% | 56 Neutral |
XSW Technical Analysis
Positive
―
Price Trends
172.47
Positive
161.62
Positive
170.54
Positive
Market Momentum
3.19
Negative
66.69
Neutral
87.34
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XSW, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 177.72, equal to the 50-day MA of 172.47, and equal to the 200-day MA of 170.54, indicating a bullish trend. The MACD of 3.19 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 87.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XSW.
XSW Peer Comparison
Comparison Results
Performance Comparison
XSW
SPDR S&P Software & Services ETF
193.19
7.82
4.22%
QQH
HCM Defender 100 Index ETF
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GTOP
Goldman Sachs Technology Opportunities ETF
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IETC
iShares Evolved US Technology ETF
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―
PTF
Invesco DWA Technology Momentum ETF
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―
WCLD
WisdomTree Cloud Computing 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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