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XSW - ETF AI Analysis

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XSW

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 mainly by strong, well-diversified software and services holdings. Standout positions like A10 Networks, Clear Secure, CWAN, Daily Journal, and Fortinet contribute positively through strong financial performance, growth initiatives, and generally reasonable valuations. The main risk factor is that the fund is concentrated in a single industry—software and related services—so sector-wide downturns or bearish technical trends in several holdings, such as Onestream and Circle Internet Group, can weigh on its rating.
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)

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 a pure U.S. software-and-services play, but its top holdings lean into some edgier names. A10 Networks has been a bright spot, rising on the back of demand for AI infrastructure and cybersecurity, while Zoom has steadied after its post-pandemic slump and is quietly helping the fund. On the flip side, Clearwater Analytics has been lagging this year, and Core Scientific plus Riot Platforms add a volatile crypto-flavored twist that can cut both ways. Overall, performance is driven by a concentrated bet on smaller, fast-moving tech names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Adeia1.63%$6.59M$2.53B67.48%
65
Neutral
Circle Internet Group, Inc. Class A1.43%$5.77M$32.79B
64
Neutral
Clear Secure1.29%$5.21M$6.51B75.74%
77
Outperform
Onestream, Inc. Class A1.23%$4.96M$5.98B7.13%
59
Neutral
RingCentral1.15%$4.62M$3.12B36.24%
63
Neutral
A10 Networks1.10%$4.46M$1.54B21.08%
79
Outperform
NextNav1.04%$4.19M$2.48B54.92%
61
Neutral
1.03%$4.15M
Clearwater Analytics Holdings1.02%$4.13M$6.88B-12.01%
79
Outperform
Hut 81.02%$4.11M$5.48B265.53%

XSW Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
163.17
Negative
100DMA
176.60
Negative
200DMA
183.66
Negative
Market Momentum
MACD
-2.80
Negative
RSI
40.61
Neutral
STOCH
16.23
Positive
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 151.52, equal to the 50-day MA of 163.17, and equal to the 200-day MA of 183.66, indicating a bearish trend. The MACD of -2.80 indicates Negative momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 16.23 is Positive, 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
$406.09M0.35%
65
Neutral
$717.47M0.18%
74
Outperform
$663.39M0.98%
62
Neutral
$589.27M0.65%
72
Outperform
$448.31M1.03%
73
Outperform
$231.79M0.45%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XSW
SPDR S&P Software & Services ETF
149.49
-17.79
-10.63%
IETC
iShares Evolved US Technology ETF
QQH
HCM Defender 100 Index ETF
GTOP
Goldman Sachs Technology Opportunities ETF
CHPY
YieldMax Semiconductor Portfolio Option Income 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.
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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