XLC — State Street Communication Services Select Sector SPDR ETF

Overview

The State Street Communication Services Select Sector SPDR ETF (XLC) is a fund managed by State Street Investment Management that focuses on the Communication Services sector. Tracked within a category containing two ETFs, this fund holds an overall rank of #101 out of 120 tracked ETFs across all categories and has received an ETFValuer grade of C with a score of 53.5 out of 100. The fund trades at a price of $109.46 and manages $22.3 billion in assets, indicating significant investor adoption despite its mid-tier ranking. It charges an expense ratio of 0.08% and offers a dividend yield of 1.33%. The substantial asset base suggests strong liquidity and market presence relative to its category peers. This combination of low cost and high assets under management contrasts with its moderate overall performance ranking. The fund's position reflects a large-scale vehicle within a specialized sector niche.

Recent price action shows a decline of 1.41% over the last day, following a 2.17% gain over the previous week. Over the last month, the fund has dropped 1.72%, and this negative trend extends to the three-month period with a return of -1.86%. The six-month return stands at -6.50%, while the year-to-date performance is down 5.82%. In contrast, the one-year return shows a positive trajectory of +3.59%, and the three-year return has surged to +67.02%. This pattern indicates a divergence where short-term and medium-term results are negative, while the longer-term annualized performance remains robust. The fund's closest category peer, VOX, has recorded a one-year return of +11.70%.

The fund carries a volatility label of Low and a beta of 0.85, suggesting it moves less than the broader market. Despite this lower volatility, the Sharpe ratio is recorded at -0.10, indicating that risk-adjusted returns have been negative over the measured period. The maximum drawdown reached -17.97%, reflecting the largest peak-to-trough decline experienced by the fund. This combination of low beta and negative Sharpe ratio implies that while the fund may not swing as wildly as higher-beta assets, it has failed to generate sufficient excess returns to compensate for the risk taken. The significant drawdown figure highlights the potential for substantial temporary losses even within a low-volatility classification. Investors should note that the fund's behavior in down markets has resulted in notable declines despite its defensive volatility metrics.

AI-generated summary based on the data on this page.

XLC Top Holdings

Holdings as of 2026-03-31 per the fund's most recent SEC N-PORT-P filing.

Market Backdrop

10-Year Treasury Yield: 4.55% (as of 2026-07-07) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 16.13 (as of 2026-07-07) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

XLC Performance History

How XLC Compares to Other Communication Services ETFs