Average Daily Volume
48.8K
Fund Overview
The SPDR S&P Software & Services ETF (XSW) is an exchange-traded fund that seeks to provide investment results that correspond generally to the performance of the S&P Software & Services Select Industry Index. This ETF offers exposure to the software and IT services sector, focusing on companies involved in software development, IT consulting, and related services. XSW is designed for investors seeking targeted exposure to this high-growth segment of the technology sector. The fund is rebalanced quarterly to maintain its target allocations and ensure it accurately reflects the performance of its underlying index.
- Asset Class
-
Equity
- Industry
-
Software
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.14 %
- Currency Hedged
-
No
- Portfolio Turnover
-
41 %
- Dividend Date
-
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Why Invest in the XSW ETF?
Potential Benefits
- Provides targeted exposure to the fast-growing software and IT services sector.
- Diversified holdings across various sub-sectors within software and services.
- Quarterly rebalancing helps maintain accurate sector representation.
- Competitive expense ratio compared to actively managed sector funds.
- Liquidity benefits of an ETF structure for easy trading.
Potential Risks
- Concentration risk in the technology sector makes it vulnerable to sector-wide downturns.
- Performance can be volatile due to the high-growth nature of software companies.
- Smaller companies in the index may have higher business risk than large-cap tech firms.
- Currency fluctuations may impact international holdings.
- Regulatory changes in the tech sector could negatively affect performance.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-10.7%
|
-10.0%
|
-5.5%
|
+8.0%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
| 2025 |
+2.9%
|
-9.4%
|
-9.2%
|
+2.0%
|
+9.9%
|
+6.0%
|
-1.5%
|
+2.1%
|
+3.7%
|
+0.4%
|
-6.1%
|
+0.4%
|
| 2024 |
-1.7%
|
+4.7%
|
+0.8%
|
-7.0%
|
+0.2%
|
+4.0%
|
+3.5%
|
+0.5%
|
+2.2%
|
+3.3%
|
+17.5%
|
-3.1%
|
| 2023 |
+12.0%
|
-1.2%
|
+2.3%
|
-5.3%
|
+9.7%
|
+4.4%
|
+6.6%
|
-5.3%
|
-5.8%
|
-5.7%
|
+14.0%
|
+10.2%
|
| 2022 |
-9.9%
|
-3.1%
|
+2.1%
|
-11.5%
|
-6.4%
|
-9.1%
|
+8.7%
|
-2.5%
|
-9.0%
|
+7.2%
|
-2.0%
|
-3.3%
|
| 2021 |
+0.2%
|
+4.0%
|
-1.9%
|
+3.5%
|
-1.5%
|
+6.8%
|
0.0%
|
+4.1%
|
-3.7%
|
+5.6%
|
-8.5%
|
-0.3%
|
| 2020 |
+3.5%
|
-5.8%
|
-16.7%
|
+15.4%
|
+12.9%
|
+4.3%
|
+4.3%
|
+7.0%
|
-4.1%
|
-1.1%
|
+18.4%
|
+10.4%
|
| 2019 |
+14.0%
|
+8.8%
|
+2.1%
|
+4.4%
|
-6.2%
|
+4.1%
|
+3.0%
|
-2.8%
|
-3.0%
|
+2.5%
|
+7.4%
|
-1.1%
|
| 2018 |
+7.3%
|
+1.6%
|
-0.1%
|
+2.4%
|
+4.4%
|
+0.2%
|
+1.2%
|
+11.3%
|
-0.6%
|
-11.2%
|
+0.7%
|
-7.8%
|
| 2017 |
+2.9%
|
+3.6%
|
+1.4%
|
+1.0%
|
+4.9%
|
+0.6%
|
+2.1%
|
+1.0%
|
+1.5%
|
+4.7%
|
+1.4%
|
-0.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
QUBT
|
QUANTUM COMPUTING INC |
1.0 % |
|
NN
|
NEXTNAV INC |
0.9 % |
|
QBTS
|
D-WAVE QUANTUM INC |
0.9 % |
|
VERX
|
VERTEX INC CLASS A |
0.9 % |
|
ASAN
|
ASANA INC ORDINARY SHARES CLASS A |
0.9 % |
|
DBX
|
DROPBOX INC CLASS A |
0.8 % |
|
PRGS
|
PROGRESS SOFTWARE CORP |
0.8 % |
|
SWI
|
SOLARWINDS CORP ORDINARY SHARES |
0.8 % |
|
APPF
|
APPFOLIO INC CLASS A |
0.8 % |
|
QXO
|
QXO INC |
0.8 % |
Top 10 holdings shown, out of 142 total holdings.
Related ETFs: XSW vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XSW tracks the S&P Software & Services Select Industry Index, which follows a modified equal-weight methodology. This approach provides balanced exposure across companies in the index rather than concentrating on the largest players. The fund primarily holds common stocks of U.S. software and IT services companies, with quarterly rebalancing to maintain target weightings. The index methodology screens for liquidity and market capitalization to ensure investability while representing the software and services sector.
Frequently Asked Questions
What types of companies does XSW invest in?
XSW invests in companies engaged in software development, IT services, and related technology services, including enterprise software, cloud computing, and cybersecurity firms.
How often is XSW rebalanced?
XSW is rebalanced quarterly to maintain its target allocations and ensure it accurately tracks its underlying index.
Is XSW a good way to invest in cloud computing?
While XSW includes some cloud computing companies, it provides broader exposure to the software and IT services sector rather than focusing specifically on cloud computing like some specialized ETFs.
How does XSW's performance compare to the broader technology sector?
XSW may outperform broader tech ETFs during periods when software companies are leading the sector, but may underperform when hardware or semiconductor stocks are driving tech sector growth.
Industry Overview
The SPDR S&P Software & Services ETF (XSW) provides exposure to the dynamic software and IT services industry, which has become increasingly critical across all sectors of the economy. This industry includes companies developing enterprise software, cloud computing solutions, cybersecurity platforms, and IT consulting services. The software sector has shown consistent growth driven by digital transformation trends, cloud adoption, and increasing enterprise technology budgets. XSW offers investors a way to participate in this growth through a diversified basket of software and services companies.
Alternative Comparison
Compared to broader tech ETFs like XLK or VGT, XSW offers more concentrated exposure specifically to software and services companies. Unlike IGV, which follows a market-cap weighted approach focused on larger software firms, XSW's equal-weight methodology provides better exposure to mid-cap growth companies in the sector. While WCLD focuses specifically on cloud computing, XSW offers broader exposure to both traditional and cloud-based software companies along with IT services providers.
Issuer Overview
XSW is issued by State Street Global Advisors (SSGA), one of the largest ETF providers globally. SSGA is known for its SPDR ETF family and has extensive experience in index-based investing. The firm manages over $3 trillion in assets and is recognized for its expertise in sector-specific ETFs and innovative investment solutions.
Conclusion
XSW provides investors with targeted exposure to the software and IT services sector through a cost-effective, transparent ETF structure. Its equal-weight approach offers balanced exposure across companies of various sizes in this high-growth industry. While offering growth potential, investors should be aware of the inherent volatility and sector concentration risks. XSW may serve as a strategic allocation within a diversified technology sector portfolio.
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