Profile
Assets class:
EquityAssets under management:
$17 BAverage volume:
$4 MDomicile:
USExpense ratio:
0.09%Inception date:
19 June 2018Website:
http://www.ssga.comLast dividends:
24 June 2024Next dividends:
N/ATop countries
Dividend yield TTM
XLC Latest News
Sector-oriented exchange-traded funds (ETFs) offer a way to gain exposure to an entire portfolio of companies that may be benefiting from trends in the market. They provide diversification from the business-specific risk of investing in just individual companies.
While the US stock market recovered recent losses, the risk of a downtrend is still high due to lofty valuations. However, the outlook for double-digit growth, rate cuts, and soft landing could drive market higher. As the market can swing either way, investment vehicles like the Communication Services Select Sector SPDR® ETF Fund could be the best option to deal with uncertainty.
The Communication Services Select Sector SPDR Fund XLC is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and is up 36.6% from its 52-week low of $62.82 per share.
2024 has been a strong year for stock picking and sector rotations, with XLC leading as the best performing sector ETF YTD. XLC is heavily weighted towards META and GOOGL, with the top 10 stocks making up a large portion of the fund. The composition of XLC reflects the convergence between technology, media, and telecom, but may be too disparate for some investors to consider buying.
The US stock market is expected to continue its bull run in 2024, with analysts predicting the S&P 500 to reach around 5400 points. The Federal Reserve is expected to initiate rate cuts, which will likely add to the bull run and increase market activity. The communication services sector, including top holdings in the XLC ETF such as Meta, Alphabet, and Netflix, is expected to generate strong earnings growth and contribute to the ETF's upside.
Communication Services sector had a strong performance in 2023, led by stocks like Meta Platforms, Netflix, and Alphabet. The Communication Services Select Sector SPDR Fund has outperformed the S&P 500 Index on a trailing 1-year basis. XLC is a beneficiary of tailwinds in the communication services and digital ad stocks, making it a strong long-term prospect.
For investors seeking momentum, Communication Services Select Sector SPDR ETF XLC is probably on the radar. The fund just hit a 52-week high and is up 48.1% from its 52-week low price of $54.71/share.
Communication services covered by Communication Services Select Sector SPDR® Fund ETF is about to make a breakout higher. January seasonality is extremely favorable. Meta and Alphabet are the two largest holdings of the XLC ETF, and both on the verge of new highs.
These sectors seem expensive, but have historically outperformed during a bull market. Just two stocks hold significant weights in each of these sectors, respectively.
This year, communication services have benefitted from not just capital appreciation (the best-performing sector in the markets), but additional fund flows as well, pointing to a more abiding sentiment shift. We see how XLC stacks up against its next largest peer-VOX. We close with a few themes that could weigh on XLC's performance going forward.
What is XLC ETF?
Normally, the fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes companies that have been identified as Communication Services companies by the GICS®, including securities of companies from the following industries: diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services. The fund is non-diversified.
What is XLC assets class?
Assets class of XLC ETF is 'Equity'
What is XLC assets under management?
Assets under management of XLC ETF is $17 B
What is XLC average volume?
Average volume of XLC ETF is $4 M
What is XLC domicile?
Domicile of XLC ETF is US
What is XLC expense ratio?
Expense ratio of XLC ETF is 0.09%
What is XLC inception date?
Inception date of XLC ETF is 19 June 2018
What is XLC website?
Website of XLC ETF is https://www.ssga.com/us/en/institutional/etfs/funds/the-communication-services-select-sector-spdr-fund-xlc