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 largely by strong holdings like CWAN and Daily Journal, which benefit from healthy financial performance, positive earnings calls, and reasonable valuations. Additional support comes from names like I3 Verticals and Zeta Global, though several holdings face profitability, valuation, or technical challenges, and NCR Voyix in particular weighs on the fund due to its financial and operational difficulties. The main risk factor is that a portion of the portfolio is exposed to companies with bearish momentum, litigation issues, or declining revenues, which can add volatility to returns.

Positive Factors

Strong Top Holdings Performance

Several top holdings, such as Cipher Mining and Digital Turbine, have shown strong year-to-date gains, supporting the ETF’s overall performance.

Focused Sector Exposure

The ETF’s heavy allocation to the technology sector allows investors to benefit from growth opportunities in a high-performing industry.

Reasonable Expense Ratio

The ETF’s expense ratio of 0.35% is relatively low, making it cost-effective compared to many actively managed funds.

Negative Factors

Over-Concentration in Technology

With nearly 90% of the portfolio in the technology sector, the ETF is highly exposed to risks specific to this industry.

Weak Recent Performance

The ETF has experienced a decline in the past month, which may indicate short-term volatility or sector-specific challenges.

Limited Geographic Diversification

The fund is almost entirely invested in U.S. companies, offering little exposure to international markets and diversification.

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

AUM442.66M

RegionNorth America

Expense Ratio0.35%

Beta1.29

IssuerSPDR

Inception DateSep 28, 2011

Dividend Yield0.06%

Asset ClassEquity

Index TrackedS&P Software & Services Select Industry

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume20,478

30 Day Avg. Volume15,249

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

257.48

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering141

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XSW Summary

The SPDR S&P Software & Services ETF (XSW) is an investment fund that focuses on companies in the software and services industry, tracking the S&P Software & Services Select Industry Index. It includes innovative technology firms like UiPath and Digital Turbine, which are involved in areas such as automation and digital solutions. This ETF could be appealing for investors looking to benefit from the growth of the tech sector and diversify their portfolios with companies driving digital transformation. However, it’s important to note that this ETF is heavily focused on technology, meaning its performance can be volatile and closely tied to trends in the tech industry.

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

The SPDR S&P Software & Services ETF (XSW) is riding the wave of innovation in the tech sector, with a heavy focus on U.S.-based software companies. Rising stars like Cipher Mining and UiPath are driving the fund’s performance, thanks to strategic advancements in high-performance computing and record profitability milestones. However, lagging names like Grid Dynamics and Jamf Holding are holding back momentum, weighed down by valuation concerns and profitability challenges. With its concentrated exposure to the software industry, XSW offers a dynamic but potentially volatile ride for investors seeking growth in the digital ecosystem.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ADEA	Adeia	1.04%	$4.54M	$2.08B	46.86%	65 Neutral
HUT	Hut 8	1.00%	$4.37M	$6.31B	115.61%	―
DJCO	Daily Journal	0.97%	$4.22M	$894.14M	22.71%	72 Outperform
OS	Onestream, Inc. Class A	0.97%	$4.21M	$5.76B	-15.36%	59 Neutral
ZETA	Zeta Global Holdings Corp	0.90%	$3.94M	$5.48B	24.59%	67 Neutral
CCC	CCC Intelligent Solutions Holdings	0.85%	$3.71M	$5.22B	-25.91%	61 Neutral
CWAN	Clearwater Analytics Holdings	0.83%	$3.64M	$7.06B	-10.46%	79 Outperform
NTNX	Nutanix	0.82%	$3.59M	$13.91B	-21.89%	62 Neutral
VYX	NCR Voyix	0.82%	$3.59M	$1.52B	-18.36%	49 Neutral
IIIV	I3 Verticals	0.82%	$3.58M	$874.20M	13.53%	71 Outperform

XSW Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

188.56

Negative

100DMA

192.67

Negative

200DMA

185.07

Positive

Market Momentum

MACD

-0.41

Positive

RSI

43.01

Neutral

STOCH

53.72

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 189.36, equal to the 50-day MA of 188.56, and equal to the 200-day MA of 185.07, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.72 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	―	―	$442.66M	0.35%	―
IETC	―	―	$957.62M	0.18%	―
SOXQ	―	―	$891.02M	0.19%	―
QQH	―	―	$710.01M	0.98%	―
GTOP	―	―	$631.44M	0.65%	―
WCLD	―	―	$254.98M	0.45%	―

Performance Comparison

XSW

SPDR S&P Software & Services ETF

185.94

-3.47

-1.83%

IETC

iShares Evolved US Technology ETF

―

SOXQ

Invesco PHLX Semiconductor ETF

―

QQH

HCM Defender 100 Index ETF

―

GTOP

Goldman Sachs Technology Opportunities 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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