XSW - ETF AI Analysis

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SPDR S&P Software & Services ETF (XSW)

Rating:65Neutral

Price Target:―

XSW, the SPDR S&P Software & Services ETF, has a solid overall rating driven mainly by strong, profitable software names like Qualys, which shows robust financial performance, efficient cash flow, and promising cybersecurity innovation. Other holdings such as Atlassian and Unity add to the fund’s appeal with growth in AI and cloud services, though their profitability and valuation challenges, along with weaker names like Netskope that face financial instability, keep the rating from being higher. The main risk factor is the ETF’s concentration in the software and services sector, which can make it more sensitive to shifts in technology markets and investor sentiment.

Positive Factors

Balanced Top Holdings

The ETF’s largest positions are spread fairly evenly across many stocks, which helps reduce the impact of any single company’s performance on the fund.

Exposure to Growing Software Industry

With most assets in technology and software-related companies, the fund is positioned to benefit if the software and services sector continues to grow over time.

Recent Short-Term Momentum

The ETF has shown strong gains over the last three months and solid performance over the past month, indicating improving short-term momentum despite a weak year-to-date result.

Negative Factors

Weak Year-to-Date Performance

The fund’s overall performance so far this year has been negative, which may concern investors looking for steadier returns.

Several Lagging Top Holdings

Many of the largest positions, including companies like Rapid7, Netskope, Yext, Amplitude, Bill.com, and CCC Intelligent Solutions, have delivered weak returns this year, weighing on the ETF’s results.

High Concentration in U.S. Tech Stocks

Almost all assets are invested in U.S. companies and heavily tilted toward technology, increasing sensitivity to downturns in the U.S. tech sector and limiting global diversification.

XSW vs. SPDR S&P 500 ETF (SPY)

AUM503.70M

RegionNorth America

Expense Ratio0.35%

Beta1.35

IssuerSPDR

Inception DateSep 28, 2011

Dividend YieldN/A

Asset ClassEquity

Index TrackedS&P Software & Services Select Industry

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume40,644

30 Day Avg. Volume48,719

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

244.38

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering132

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XSW Summary

XSW is the SPDR S&P Software & Services ETF, which follows the S&P Software & Services Select Industry Index. It focuses mainly on U.S. technology companies that build software or provide IT services, including names like Rapid7 and Qualys. Investors might consider XSW if they want growth potential from trends like cloud computing, cybersecurity, and digital tools, while still getting diversification across many different software firms instead of picking just one stock. A key risk is that it is heavily concentrated in tech, so its price can rise or fall sharply with changes in the technology sector and overall stock market.

How much will it cost me?The SPDR S&P Software & Services ETF (XSW) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This expense ratio is slightly higher than average for ETFs because it tracks a specialized sector and is not passively managed like broad market index funds.

What would affect this ETF?The SPDR S&P Software & Services ETF (XSW) could benefit from ongoing advancements in cloud computing, cybersecurity, and AI, as these technologies drive demand for software solutions and digital transformation. However, rising interest rates or economic slowdowns could negatively impact the growth-focused companies in this ETF, especially those with higher debt or reliance on venture capital. Its heavy exposure to U.S.-based technology firms makes it sensitive to regulatory changes or shifts in tech sector sentiment.

XSW Top 10 Holdings

XSW is a pure play on U.S. software and services, with performance largely steered by fast-rising names like RingCentral, Porch Group, and Atlassian, all benefiting from strong momentum in cloud and AI-driven tools. Appian and Amplitude are also helping power the fund, though their profitability issues mean the ride can be bumpy. On the flip side, Yext, Rapid7, and Blackbaud have been lagging, acting as a bit of a brake on returns. Overall, this is a tech-heavy, innovation-focused ETF with concentrated exposure to smaller, high-growth software players.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
TEAM	Atlassian	1.32%	$6.64M	$48.17B	13.50%	66 Neutral
NTSK	Netskope, Inc.	1.29%	$6.52M	$7.06B	-30.32%	47 Neutral
AMPL	Amplitude	1.24%	$6.24M	$1.68B	15.47%	52 Neutral
RNG	RingCentral	1.20%	$6.06M	$6.14B	134.71%	63 Neutral
RPD	Rapid7	1.10%	$5.52M	$839.81M	-38.50%	56 Neutral
GTLB	Gitlab	1.08%	$5.46M	$8.13B	0.14%	62 Neutral
PRCH	Porch Group	1.07%	$5.39M	$1.80B	-15.27%	57 Neutral
YEXT	Yext	1.07%	$5.37M	$632.47M	-30.03%	63 Neutral
QLYS	Qualys	1.05%	$5.31M	$6.33B	31.15%	78 Outperform
PD	PagerDuty	1.04%	$5.26M	$1.14B	-12.11%	63 Neutral

XSW Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

192.24

Positive

100DMA

178.97

Positive

200DMA

171.94

Positive

Market Momentum

MACD

1.34

Positive

RSI

48.81

Neutral

STOCH

46.10

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XSW, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 201.58, equal to the 50-day MA of 192.24, and equal to the 200-day MA of 171.94, indicating a neutral trend. The MACD of 1.34 indicates Positive momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 46.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XSW.

XSW Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XSW	―	―	$503.70M	0.35%	65 Neutral
QQH	―	―	$738.02M	0.98%	62 Neutral
GTOP	―	―	$710.93M	0.65%	74 Outperform
IETC	―	―	$697.15M	0.18%	73 Outperform
PTF	―	―	$538.99M	0.60%	66 Neutral
WCLD	―	―	$296.19M	0.45%	65 Neutral

Performance Comparison

XSW

SPDR S&P Software & Services ETF

197.13

-8.11

-3.95%

QQH

HCM Defender 100 Index ETF

―

GTOP

Goldman Sachs Technology Opportunities ETF

―

IETC

iShares Evolved US Technology ETF

―

PTF

Invesco DWA Technology Momentum ETF

―

WCLD

WisdomTree Cloud Computing Fund

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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