What Is the XTL ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
It invests across the US telecommunications and network equipment industry, and its equal-weighted approach captures the growth potential of small and mid-cap stocks.
SubscribeWhat Is This ETF?
It tracks the S&P Telecom Select Industry Index and invests across a variety of sub-sectors of the US telecommunications industry. In addition to traditional wireless carriers, it holds a balanced mix of telecom equipment makers and alternative communications providers.
It suits investors who want exposure to the growth of the broader telecom infrastructure and equipment industry rather than a concentrated bet on a few large telecom stocks.
Launched by State Street (SSGA) in 2011, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | S&P Telecom Select Industry Index |
| Management Style | Passive (equal-weighted) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.35% |
It uses a modified equal-weighting method that keeps the weights of individual holdings in the portfolio roughly even. This reduces the influence of giants such as T and VZ and raises the weight of equipment companies that are driving technological innovation.
- Departs from the large-cap-focused market-cap-weighted approach
- High exposure to the telecom equipment and infrastructure sector
Size and Costs
Assets under management (AUM) stand at $478.5M, and the expense ratio is 0.35% per year.
Unlike XLC or VOX, where the largest companies by market capitalization carry heavy influence, it holds all stocks at similar weights, so it responds more sensitively to the performance of small and mid-cap stocks.
Performance and Fund Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeReturns tend to fluctuate with the 5G infrastructure investment cycle and demand for cloud networks, and over the long term investors can expect to benefit from the ongoing upgrading of communications networks.
Fund flows are driven by the interest rate environment and the scale of capital expenditure by global carriers, and the ETF also draws attention as an alternative investment for small and mid-sized telecom infrastructure companies that have been overlooked in a tech-led market.
Strengths and Weaknesses
Broad exposure to the telecom ecosystem is a strength, but the high weighting of small and mid-cap stocks can make it more volatile than ETFs centered on large caps.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
XLC, VOX, and FCOM, shown in the table, use a market-cap-weighted approach, so mega-cap IT and communications companies such as Meta and Google carry very high weights. If you want to follow a similar theme but with a somewhat heavier allocation to traditional carriers, you could consider IYZ, and if you would rather focus on next-generation communications technology and 5G-specialized companies, you could also consider NXTG.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLC | State Street Communication Services Select Sector SPDR ETF | $101.21 | -1.9% | $22.2B | 0.08% | 1.36% | -13.0% |
 VOX | Vanguard Communication Services ETF | $174.02 | -1.9% | $5.6B | 0.09% | 1.07% | -8.8% |
 FCOM | Fidelity MSCI Communication Services Index ETF | $65.57 | -2.1% | $1.6B | 0.08% | 1.04% | -9.1% |
 GXPC | Global X PureCap MSCI Communication Services ETF | $26.45 | -6.6% | $122.7M | 0.15% | 0.36% | -9.1% |
 TRUC | VanEck Communication Services TruSector ETF | $22.67 | -4.2% | $98.2M | 0.14% | 0.49% | - |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 MYMK | State Street My2031 Municipal Bond ETF | 0.05% | $24.66 | +0.1% | $0.0M | - | 2.61% |
 VSAT | Viasat Inc | 0.04% | $77.99 | -0.3% | $10.7B | - | - |
 GSAT | Globalstar Inc | 0.04% | $83.53 | -0.6% | $10.8B | - | - |
| CIEN | CIENA Corp | 0.04% | $349.45 | -3.8% | $49.6B | 78.0 | - |
 IRDM | Iridium Communications Inc | 0.07% | $46.05 | +0.2% | $4.9B | 30.5 | 1.34% |
 VIAV | Viavi Solutions Inc | 0.04% | $33.32 | -3.3% | $8.2B | - | - |
| T | AT&T Inc | 0.04% | $20.92 | +1.1% | $140.9B | 11.3 | 5.31% |
 LUMN | Lumen Technologies Inc | 0.03% | $4.79 | -0.2% | $4.9B | - | - |
| LITE | Lumentum Holdings Inc | 0.03% | $920.43 | +0.7% | $83.4B | - | - |
Investor Checkpoints
If you are considering an investment in XTL, it is important to understand precisely how the sector is defined and how the management approach differs. The core holdings are not simply companies that collect telecom fees, but the companies that build the networks themselves.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📊 Small and Mid-Cap Weighting | Whether you can tolerate the volatility that comes with equal weighting | Somewhat high |
| 📡 5G Investment Trends | Check global telecom equipment demand and the infrastructure build-out cycle | Needs review |
| 💰 Total Expense Ratio | Assess whether the cost is reasonable for a sector-specific ETF | Holding steady |
| 💵 Dividend Yield | Check how dividend appeal changes as the weighting of growth stocks expands | On the low side |
The telecom equipment business is highly sensitive to the macroeconomic environment and to companies' capital expenditure plans. Keep in mind that the risk of individual holdings can rise sharply with changes in technology standards or the regulatory environment.
This ETF can be an effective alternative for investors who feel uneasy about telecom sector investing centered on Big Tech and want to bet on the growth of the companies that actually underpin telecom infrastructure.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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