XSW - ETF AI Analysis

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SPDR S&P Software & Services ETF (XSW)

Rating:65Neutral

Price Target:―

XSW, the SPDR S&P Software & Services ETF, has a solid overall rating driven by strong contributors like Zoom, A10 Networks, and Clearwater Analytics, which show healthy financial performance, positive earnings commentary, and supportive technical trends. Additional support comes from names like Fortinet, Daily Journal, and Confluent, which offer good growth prospects or attractive valuations, even if some face profitability challenges or bearish technical signals. The main risk factor is that the fund is concentrated in software and services companies, so sector-wide setbacks or weakness in a few holdings with litigation, leverage, or negative earnings could weigh on future returns.

Positive Factors

Strong Top Holdings Performance

Several of the largest positions, including names like Riot Platforms and Daily Journal, have shown strong gains this year, helping support the fund’s overall results.

Broad Software and Services Exposure

The ETF holds many different software and services companies, which spreads risk across a wide range of businesses within the industry.

Reasonable Expense Ratio for a Niche Sector Fund

The fund’s expense ratio is moderate for a specialized technology ETF, so investors are not paying unusually high ongoing fees for this focused exposure.

Negative Factors

Recent Weak Performance

The ETF has shown weak returns over the past month, three months, and year to date, which may concern investors looking for near-term strength.

High Concentration in U.S. Technology

Almost all assets are in U.S. companies and heavily tilted toward technology, increasing sensitivity to downturns in the U.S. tech sector.

Exposure to Volatile Crypto-Linked Stocks

Top holdings such as Riot Platforms and Hut 8 are tied to the cryptocurrency space, which can be highly volatile and add extra risk to the fund.

XSW vs. SPDR S&P 500 ETF (SPY)

AUM349.74M

RegionNorth America

Expense Ratio0.35%

Beta1.30

IssuerSPDR

Inception DateSep 28, 2011

Dividend Yield0.08%

Asset ClassEquity

Index TrackedS&P Software & Services Select Industry

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume102,519

30 Day Avg. Volume45,803

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

235.28

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering140

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 invests mainly in U.S. technology companies that build software or provide tech services, including names like Synopsys and CCC Intelligent Solutions. This fund can appeal to investors who want growth potential from trends like cloud computing, data analytics, and digital tools, while still spreading money across many different software businesses. A key risk is that it is heavily focused on tech, so its price can rise and fall more sharply than the 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 leaning hard into U.S. software and services, with a surprising twist: crypto-linked names are steering near the front of the pack. Hut 8, Core Scientific, and Riot Platforms have been rising, giving the fund a speculative, blockchain-flavored boost even as Riot’s recent stretch looks a bit mixed. Onestream and Daily Journal add to the upside with steady, growth-focused momentum. Offsetting that strength, Digital Turbine and CCC Intelligent Solutions are lagging, acting like small anchors on an otherwise tech-heavy, North America–centric portfolio.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ADEA	Adeia	1.29%	$4.58M	$2.03B	8.24%	65 Neutral
OS	Onestream, Inc. Class A	1.21%	$4.28M	$5.77B	-2.48%	59 Neutral
HUT	Hut 8	1.10%	$3.89M	$5.79B	171.50%	―
ATEN	A10 Networks	1.02%	$3.60M	$1.43B	-6.86%	79 Outperform
CWAN	Clearwater Analytics Holdings	1.01%	$3.57M	$6.78B	-22.08%	79 Outperform
AUR	Aurora Innovation	0.99%	$3.52M	$9.24B	-41.52%	55 Neutral
TDC	Teradata	0.98%	$3.46M	$3.06B	34.39%	68 Neutral
ZM	Zoom Video Communications	0.98%	$3.45M	$26.98B	9.00%	81 Outperform
CFLT	Confluent	0.96%	$3.41M	$10.97B	-5.59%	72 Outperform
DJCO	Daily Journal	0.95%	$3.36M	$672.33M	23.02%	72 Outperform

XSW Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

177.97

Negative

100DMA

185.61

Negative

200DMA

186.13

Negative

Market Momentum

MACD

-8.62

Positive

RSI

32.24

Neutral

STOCH

24.19

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XSW, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 161.82, equal to the 50-day MA of 177.97, and equal to the 200-day MA of 186.13, indicating a bearish trend. The MACD of -8.62 indicates Positive momentum. The RSI at 32.24 is Neutral, neither overbought nor oversold. The STOCH value of 24.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XSW.

XSW Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XSW	―	―	$349.74M	0.35%	―
IETC	―	―	$796.46M	0.18%	―
QQH	―	―	$664.65M	0.98%	―
GTOP	―	―	$590.54M	0.65%	―
PTF	―	―	$416.65M	0.60%	―
WCLD	―	―	$218.84M	0.45%	―

Performance Comparison

XSW

SPDR S&P Software & Services ETF

150.55

-33.81

-18.34%

IETC

iShares Evolved US Technology ETF

―

QQH

HCM Defender 100 Index ETF

―

GTOP

Goldman Sachs Technology Opportunities ETF

―

PTF

Invesco DWA Technology Momentum ETF

―

WCLD

WisdomTree Cloud Computing Fund

―

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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