XLC ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
The Communication Services Select Sector SPDR ETF (XLC) is a sector ETF with concentrated exposure to telecom, media, and internet platform stocks in the S&P 500. Its low expense ratio, dividends, and how its fees and liquidity compare with peer sector ETFs are the key selection criteria.
SubscribeWhat Is the Communication Services Select Sector SPDR ETF?
This is a sector ETF that tracks the communication services sector index within the S&P 500. It holds large-cap stocks in the interactive media, entertainment, media, and telecom services industries on a market-cap-weighted basis, tracking the performance of the sector as a whole.
It suits investors who want concentrated exposure to the telecom, media, and internet platform sectors, and it is used to complement the sector weightings of core holdings.
It is a passively managed (index-tracking) ETF run by State Street.
How Does the Communication Services Select Sector SPDR ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Communication Services Select Sector Index |
| Management Style | Passive (index tracking) |
| Issuer | State Street (SSGA) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.08% |
The fund holds communication services stocks included in the S&P 500 at their market-cap weights, tracking the performance of the sector as a whole. It follows the index through full replication, and rebalancing is reflected automatically each quarter according to decisions by the index committee.
- Lower expense ratio than the category average
- Clear concentrated exposure to the telecom, media, and internet platform sectors
Communication Services Select Sector SPDR ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $21.8B, and the total expense ratio is 0.08% per year.
Its strengths are ample liquidity and a low expense ratio compared with similar ETFs that track the same sector.
Communication Services Select Sector SPDR ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe communication services sector tends to move with the earnings of internet platform companies, the advertising cycle, and trends in the media industry, and its short-term direction is also affected by Big Tech volatility and the interest rate environment.
Fund flows follow sector rotation demand, and inflows can become especially pronounced when market interest in internet and media themes rises. As a sector ETF, it tends to be more volatile than core ETFs.
Communication Services Select Sector SPDR ETF Pros and Cons
Its strengths are a low expense ratio and clear sector exposure, while its weaknesses are concentration in top holdings and volatility from sector concentration.
💪 Key Strengths
⚠️ Points to Watch
Communication Services Select Sector SPDR ETF Alternative ETFs and Related Products
Direct substitutes tracking the same communication services sector include the lower-cost FCOM and Vanguard's VOX, so investors can choose by comparing fees and liquidity. RSPC, which holds the same sector on an equal-weighted basis, is also a variant that eases top-holdings concentration, and investors seeking a narrower focus on telecom infrastructure can also consider XTL.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VOX | Vanguard Communication Services ETF | $171.35 | -1.5% | $5.5B | 0.09% | 1.09% | -8.0% |
 FCOM | Fidelity MSCI Communication Services Index ETF | $64.68 | -1.4% | $1.5B | 0.08% | 1.05% | -8.2% |
 XTL | State Street SPDR S&P Telecom ETF | $189.39 | -3.3% | $480.2M | 0.35% | 1.02% | +23.1% |
 GXPC | Global X PureCap MSCI Communication Services ETF | $26.09 | -1.4% | $122.2M | 0.15% | 0.36% | -8.3% |
 TRUC | VanEck Communication Services TruSector ETF | $22.43 | -1.1% | $81.5M | 0.14% | 0.49% | - |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| META | Meta Platforms Inc | 0.38% | $614.99 | -1.5% | $1.57T | 21.0 | 0.3% |
| GOOG | Alphabet Inc | 0.13% | $278.22 | -1.4% | $3.41T | 14.5 | 0.31% |
| GOOGL | Alphabet Inc | 0.30% | $279.84 | -1.4% | $3.41T | 14.6 | 0.31% |
| NFLX | Netflix Inc | 0.11% | $62.08 | +0.1% | $254.9B | 17.9 | - |
| TTWO | Take-Two Interactive Software Inc | 0.05% | $190.17 | -1.7% | $35.6B | - | - |
| T | AT&T Inc | 0.05% | $21.41 | +2.3% | $144.2B | 11.5 | 5.18% |
Communication Services Select Sector SPDR ETF Investor Checkpoints
These are the points to review before investing in XLC. Unlike core holdings, sector ETFs carry greater concentration and volatility, so it is important to check their weight in your overall portfolio and their costs in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the effect of cumulative costs over a long holding period | Low |
| 📊 Top Holdings Concentration | Trend in the weight of top internet platforms | Large weighting |
| 🔀 Sector Weighting | Review sector exposure within the overall portfolio | Needs review |
| 💱 Exchange Rate | Effect on returns converted into won | Not hedged |
Single-sector concentration and top-holdings concentration are the main drivers of short-term volatility. The whole sector can swing together on earnings or regulatory issues at internet platform companies, and exchange rate movements also affect returns in won.
For investors who want concentrated exposure to the telecom, media, and internet platform sectors, it works well as a low-cost complement to core holdings. If you want an even lower expense ratio, consider FCOM, and if you want to ease concentration, consider RSPC alongside it.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
Today's 5 AI picks, all free