Everyday businesses and consumers are using more and more digital services. From the internet and streaming services to mobile phones and new communication products, innovation is an ongoing trend.
The Communication Services Select Sector SPDR Fund (XLC), is designed to capture the growing digital side of the U.S. economy. This Exchange Traded Fund (ETF) invests in all the components of the S&P 500 in the Telecommunications, Media, Wireless, Internet and Entertainment Industries.
XLC tracks a modified market-cap-weighted index of this Sector currently consisting of 23 components. The index is rebalanced quarterly.
XLCs top holdings are everyday names for the digital products and services the companies known and used by consumers and businesses everyday:
Meta Platforms (Facebook) is the top holding at 23.59%, followed by Alphabet (Google) Class A (12.10%) and Class C stock (10.37%), AT&T (4.78%), and Charter Communications (4.77%). All the holdings are focus on the evolving world of communications as a key economic driver to the 21st century economy.
XLC has attracted more than $14 billion in assets under management. This sector is being embraced by investors as an important sleeve to their overall portfolios.
Fine-Tuned and Low Cost**
The Communication Select Sector SPDR brings a more fine-tuned approach to three key subsectors communications, media, and technology that have matured to deserve their own classification, considering the industries size and success.
XLC offers that access in an easy and low-cost manner (0.10% annual expense ratio), with the asset size and ETF structure which also brings tradability to this important sector.
XLC is an investment in the leaders of the communication, media, and wireless industries available to any investor, whether large or small or institutional. That is made possible through the structure of an exchange-traded fund that brings a low-cost and index-based approach to investing in any part of the equity world.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
* Holdings, Weightings & Assets as of 9/30/23 subject to change
** Ordinary brokerage fees apply
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
Email: [email protected]
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
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Select Sector SPDR
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.