State Street Communication Services Select Sector SPDR ETF
XLC SectorUpdated: Jul 4, 2026, 21:17 UTC
Key Metrics
Top 10 Holdings
| Holding | Ticker | Weight | Bar |
|---|---|---|---|
| Meta Platforms Inc Class A | META | 14.02% | |
| Alphabet Inc Class A | GOOGL | 9.82% | |
| Alphabet Inc Class C | GOOG | 7.81% | |
| Take-Two Interactive Software Inc | TTWO | 4.88% | |
| Live Nation Entertainment Inc | LYV | 4.76% | |
| EchoStar Corp Class A | ECHO | 4.62% | |
| The Walt Disney Co | DIS | 4.53% | |
| Warner Bros. Discovery Inc Ordinary Shares - Class A | WBD | 4.19% | |
| Electronic Arts Inc | EA | 4.18% | |
| Omnicom Group Inc | OMC | 4.05% |
Sector Allocation
About This ETF
The State Street Communication Services Select Sector SPDR ETF (XLC) is a Sector ETF with an expense ratio (TER) of 0.08% and $25.1B in assets under management., with its largest holdings being Meta Platforms Inc Class A, Alphabet Inc Class A, Alphabet Inc Class C. The ETF currently yields 1.21% in dividends. Year-to-date, XLC has returned -5.7%. With an expense ratio of just 0.08%, it is one of the cheapest ETFs in its category.
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.
FAQ — XLC
What is the TER of XLC (State Street Communication Services Select Sector SPDR ETF)?
XLC has a Total Expense Ratio (TER) of 0.08 % per year. That sits at the sector category median (0.08 % across 13 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has XLC delivered?
Performance for XLC: YTD: -5.70 % · 3-year p.a.: +20.18 % · 5-year p.a.: +7.03 %. Over 5 years, XLC outperforms the sector category median of +6.75 % by +0.28 pp. Past performance is no guarantee of future returns.
What are the top holdings of XLC?
The five largest positions in XLC are: META, GOOGL, GOOG, TTWO, LYV. The full holdings list is updated daily on this page.
Does XLC pay dividends?
XLC has a current dividend yield of 1.21 %. Distributing ETFs pay this out in cash; accumulating versions reinvest it inside the fund. Check the share class on your broker before buying.
Where can I buy or set up a savings plan for XLC?
XLC is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What is XLC and why does it matter?
The State Street Communication Services Select Sector SPDR ETF (ticker XLC) tracks only the GICS communication services sector of the S&P 500. With roughly $25.6B in assets and a very low expense ratio of 0.08%, it bundles heavyweights such as Meta Platforms, Alphabet and Netflix. The fund combines traditional telecommunications, media, entertainment and interactive media & services into a single, highly concentrated exposure. For investors it is a targeted instrument to express a view on digital advertising and streaming.
Performance in context
Returns reflect the cyclical nature of the communications sector. Over three years XLC delivered a cumulative return of about 24.55%, while the five-year figure is notably more modest at roughly 9.12%. Year to date the fund sits at around 0.12%. The price trades near $116.67, close to its 52-week high of $120.41 and well above the low of $100.04.
The main drivers are digital advertising revenue at Meta and Alphabet, plus subscription growth at Netflix. Because these few names dominate results, performance hinges heavily on their quarterly earnings and the broader advertising cycle. The dividend yield is around 1.2%.
Risk profile
As a pure sector ETF, XLC carries high concentration risk: 100% of the portfolio sits in communication services, and Meta plus the two Alphabet share classes alone exceed 30%. The fund is explicitly non-diversified. If the advertising cycle weakens or regulatory action pressures the large platforms, there is no offset from other industries.
- Concentration risk from a handful of mega-cap names
- Regulatory and antitrust risk for technology platforms
- Cyclical dependence on advertising and consumer spending
For euro-area investors there is also currency risk: the fund is denominated in US dollars, so a weaker dollar against the euro can erode returns regardless of the underlying price movement.
Who is XLC suitable for?
The ETF suits conviction investors with a long horizon who want focused exposure to digital advertising, streaming and interactive media and can tolerate price swings. As a complementary satellite within a broadly diversified portfolio, it can express a deliberate sector bet.
It is less appropriate as a core holding or sole investment for safety-oriented savers. Anyone seeking broad diversification, low volatility or reliable income will not find the right tool in the highly concentrated XLC. Investors with a short horizon or low risk tolerance should also scrutinise the concentration in a few names and the dollar exposure. This is not investment advice.
How it compares with peers
Several communication-sector ETFs from other issuers offer alternatives:
- Vanguard Communication Services ETF (VOX): broader than XLC, as it reaches beyond the S&P 500 to include mid- and smaller-cap companies.
- Fidelity MSCI Communication Services Index ETF (FCOM): follows an MSCI index with a larger number of holdings and similarly low costs.
- iShares Global Comm Services ETF (IXP): globally oriented rather than confined to the United States.
XLC stands out for deep liquidity, a very low 0.08% expense ratio and a pure US large-cap focus, but it is more concentrated in a few heavyweights than the broader alternatives.
Where can I buy XLC?
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