xlc stock: Communication Services ETF Overview

This article explains xlc stock — the State Street Communication Services Select Sector SPDR ETF — covering fund profile, holdings, index methodology, performance (data as of Jan 27, 2026), dividen...

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XLC (State Street Communication Services Select Sector SPDR ETF)

Quick snapshot: xlc stock refers to the State Street Communication Services Select Sector SPDR ETF, a sector ETF that provides targeted exposure to the communication services components of the S&P 500. This guide explains what xlc stock is, how the ETF is constructed and traded, what it holds, and how investors typically use it. Data and news cited are current as of Jan 27, 2026, and sourced from issuer pages and market-data providers.

Fund profile

Ticker: XLC (commonly referenced as xlc stock in market commentary)
Issuer: State Street Global Advisors (SPDR family)
Exchange listing: NYSE Arca (trades like a stock)
Inception: 2018 (created following the GICS reclassification that established the Communication Services sector)
Expense ratio: 0.10% (as reported by the issuer; confirm the latest figure on the fund factsheet)
Assets under management (AUM): approximately $8.3 billion (data as of Jan 27, 2026 per issuer and market-data aggregators; check the fund page for daily updates)
Typical trading symbol details: ticker XLC, quoted intraday by exchanges and market-data platforms; NAV and market price can differ intraday

Note: xlc stock is an ETF (exchange-traded fund), not an individual company or a cryptocurrency token. It represents a pooled portfolio of equities in the Communication Services sector of the S&P 500.

Investment objective and strategy

XLC's stated objective is to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the S&P Communication Services Select Sector Index (or an equivalent index). In practice, xlc stock uses a passive, typically market-cap-weighted replication or sampling approach to track that index.

Key strategy points:

Passive management: The fund seeks to replicate sector index performance rather than select securities actively.
Market-cap weighting: Constituents are weighted by market capitalization within the index framework, so larger companies have a bigger impact on xlc stock returns.
Replication or sampling: Depending on trading and liquidity considerations, the fund may hold all index constituents or a sample intended to closely match index performance.
Intended use: Investors use xlc stock to gain concentrated exposure to the Communication Services sector—useful for tactical allocation, sector rotation strategies, or to complement broad-market holdings.

Index tracked and methodology

XLC tracks the S&P Communication Services Select Sector Index (the sector slice of the S&P 500 representing communication services). The index construction follows these general rules:

Constituent selection: Companies included are S&P 500 constituents classified in the Communication Services sector under the Global Industry Classification Standard (GICS). That includes sub-industries such as interactive media & services, media, and telecommunications services.
Weighting: The index is market-cap weighted, so larger market-cap companies represent a higher percentage of the index. This leads to top-heavy exposures when mega-cap names dominate sector market value.
Reconstitution and rebalancing: The index is updated periodically to reflect corporate actions and S&P Dow Jones Indices’ reclassifications; standard practice is quarterly rebalancing with ad-hoc changes for corporate events. Check the index methodology document on S&P’s site for exact timing and rules.

Because xlc stock follows this index, its composition shifts when the index adjusts for additions/removals or when market caps change significantly.

Holdings and portfolio composition

XLC holds the communication services companies that are components of the S&P 500. The ETF’s portfolio typically features a relatively small number of large-cap names that account for a substantial share of assets, plus a broader set of mid- and large-cap media, telecom, and interactive services companies.

Portfolio characteristics (as of Jan 27, 2026 unless otherwise noted):

Number of holdings: The fund holds the communication services S&P 500 constituents (often several dozen names depending on index composition).
Sector/subsector allocation: The portfolio is concentrated in interactive media & services, media, and telecommunications services, reflecting the GICS sub-industry split.
Geographic exposure: Primarily U.S.-listed companies; the underlying index is based on S&P 500 constituents, so non-U.S. exposure is limited to any international companies included in the S&P 500.

Top holdings

A relatively small set of mega-cap technology and media companies commonly make up a substantial portion of xlc stock's weight. Examples of types of companies that are frequently among the top holdings include global internet platforms and major media firms. Recent market commentary points to companies such as major online advertising and social platforms, streaming leaders, and large integrated telecom/media firms as dominant weights. Because weightings change with market prices and index rebalances, consult the fund fact sheet for the current top-ten holdings and their weight percentages.

Illustrative note: Market-data reports published by providers such as Barchart and Morningstar show that companies like top streaming and social platforms often represent significant allocation in xlc stock, driving much of the ETF’s performance and volatility.

Performance

How performance is measured for xlc stock:

Total return vs. price return: The fund reports total return (which includes price appreciation and distributions reinvested) and NAV-based performance; many investors compare xlc stock’s total return to the underlying index and to broad benchmarks like the S&P 500.
Historical windows: Typical metrics include 1‑year, 3‑year, 5‑year, and since-inception returns. Because xlc stock is sector-concentrated and top-heavy, its returns can deviate materially from the broad market.

Recent performance context (data as of Jan 27, 2026):

Over the most recent 52-week period, xlc stock has outperformed several individual communication services names and the broader market, with market-data reports noting an approximate 17% gain for the fund over the past year (source: Barchart reporting as of Jan 27, 2026).
Individual constituent performance can vary widely; for example, AT&T (a telecom giant) has underperformed the S&P 500 over the same 52-week stretch, while streaming and interactive-media leaders posted stronger gains that helped lift xlc stock.

Tracking error and considerations:

Tracking error measures how closely xlc stock follows its index. Passive replication typically keeps tracking error low, but factors such as fund fees, transaction costs, and sampling techniques introduce some variance.
For current NAV, historical NAV series, and share-price history, consult the issuer’s fund page and major market-data providers (e.g., Yahoo Finance, Nasdaq, Investing.com) for time-stamped data.

Dividends and distributions

Frequency: XLC typically distributes cash dividends on a quarterly basis, reflecting dividends paid by underlying constituents.
Yield metrics: Dividend yield for xlc stock is reported as a trailing twelve-month (TTM) dividend yield on market-data platforms. Because the fund focuses on growth-oriented media and internet companies as well as telecom firms, the yield tends to be moderate and changes over time.
Ex-dividend and record dates: Distribution schedules, ex-dividend dates, and payment dates are published by the issuer on each distribution announcement. Investors should consult the fund’s distribution history on the provider’s site for exact dates and amounts.
Treatment for investors: Dividends received by shareholders are typically reported for tax purposes; some investors elect to reinvest distributions if their brokerage or platform supports dividend reinvestment plans.

Fees and expenses

Expense ratio: As noted above, the fund’s expense ratio is competitive compared with many actively managed sector funds (the issuer reported 0.10% as of Jan 27, 2026). Confirm the current expense ratio on the official fund factsheet.
Additional costs: Investors trading xlc stock incur normal equity trading costs such as bid-ask spreads and brokerage commissions (if applicable). For smaller trades or illiquid market conditions, spreads can widen, adding to transaction cost.
Impact: Even modest fees compound over time; for long-term investors, expense differentials between funds can have measurable effects on cumulative returns.

Trading, liquidity, and market structure

Exchange trading: XLC trades intraday on NYSE Arca like any stock, with continuous bid and ask prices.
Average daily volume: XLC generally has substantial trading volume reflecting its popularity among sector ETF investors. Check real-time market-data providers for the latest average daily volume statistics.
Creation/redemption mechanism: Like all open-end ETFs, XLC uses an authorized participant creation/redemption process to help keep market price aligned with NAV and provide institutional liquidity.
Intraday pricing vs NAV: Market price may trade at a premium or discount to NAV intraday; ETF arbitrage and creation/redemption activity typically compresses persistent premiums/discounts.
Options availability: Options exist on many widely traded ETFs; check option listings if you are interested in derivatives on xlc stock.

Risks

Principal risks associated with xlc stock include:

Sector concentration risk: XLC concentrates exposure within the Communication Services sector; adverse sector-specific developments can have an outsized impact compared with diversified equity funds.
Top‑heavy and company concentration: Because the index is market-cap weighted, a handful of mega-cap constituents can dominate performance, increasing idiosyncratic risk.
Equity market risk: As an equity ETF, xlc stock is subject to general equity market volatility and declines.
Tracking error: While the fund seeks to replicate its index, fees, transaction costs, and sampling can create small differences between the fund’s return and the index.
Liquidity and market structure risk: In stressed market conditions, bid-ask spreads can widen and market liquidity can deteriorate, increasing trading costs.
Issuer/operational risk: Fund management, operational failures, or regulatory changes affecting ETFs could impact shareholders.

All risks should be reviewed in the prospectus; the summary here is educational and not exhaustive.

Tax considerations

General tax points for U.S. investors in xlc stock (note: this is informational and not tax advice):

Dividends: Distributions may be composed of qualified dividends (eligible for lower long‑term capital gains rates if holding-period tests are met) and non-qualified dividends (taxed at ordinary income rates). The issuer reports the tax character of distributions annually.
Capital gains: Selling ETF shares triggers capital gains or losses based on the difference between sale proceeds and cost basis; holding period determines short- vs. long-term capital gains treatment.
ETF tax efficiency: ETFs are generally tax-efficient due to their in-kind creation/redemption mechanism, which can reduce capital gains distributions compared with mutual funds.

Consult a qualified tax advisor for personalized guidance and review the fund’s annual tax information and prospectus for details.

Use in portfolios

Common roles for xlc stock in investor portfolios:

Sector exposure: Investors use xlc stock to express a view on communication services, including interactive media, streaming, and telecom.
Tactical allocation: Traders and portfolio managers use sector ETFs like xlc stock to overweight or underweight a sector relative to the benchmark.
Complement to broad-market holdings: xlc stock can serve as a complement to a broad U.S. equity allocation for those seeking targeted exposure to media and communications trends.

Suitability depends on investor objectives and risk tolerance. XLC’s concentrated sector exposure typically implies higher volatility than a broad-market ETF.

Comparison with similar ETFs and alternatives

Investors comparing xlc stock to alternatives typically evaluate:

AUM and liquidity: Larger-AUM ETFs often provide tighter spreads and deeper liquidity.
Expense ratio: Lower fees improve net returns over time.
Tracking error: How closely each fund follows its benchmark.
Holdings overlap: Degree of common holdings with other funds (e.g., whether two funds both have heavy weights in the same mega-cap stocks).

Possible peers and alternatives include other communication-focused or telecom/media ETFs and broader technology/communication exposure funds. When comparing, use objective metrics (AUM, expense ratio, historical tracking error, holdings overlap) and consult issuer fact sheets for up-to-date details.

Historical timeline and notable events

2018 — Sector formation: XLC’s inception followed the GICS reclassification that established Communication Services as a sector, reshaping sector allocations across indexes and ETFs.
Ongoing — Periodic rebalances and index updates: The index and ETF composition have evolved with corporate actions and S&P 500 constituent changes, affecting xlc stock’s holdings and sector weightings.
Recent market context (as of Jan 27, 2026): Market-data reporting highlights that xlc stock gained roughly 17% over the previous 52 weeks, outperforming certain lagging telecom names and reflecting strong performance among streaming and interactive-media leaders (source: Barchart).

These milestones and flows influence the fund’s profile; consult issuer press releases and periodic reports for a complete historical record.

Regulatory filings and documentation

Primary documents for xlc stock investors:

Prospectus: The definitive legal disclosure describing investment objectives, risks, fees, and operations.
Fund fact sheet: A concise summary with holdings, top weights, and performance snapshots (updated regularly by the issuer).
Annual and semi-annual reports: Audited financial statements and management discussion.
SEC filings: Required filings (e.g., N‑CSR, N‑PORT) filed with the U.S. Securities and Exchange Commission.

Obtain these documents from the issuer’s fund page or from official SEC filings published by the fund.

News highlights and market context (data and reporting dates)

As of Jan 27, 2026, market-data reporting from Barchart noted that xlc stock (the Communication Services Select Sector SPDR ETF) had surged approximately 17.1–17.3% over the past 52 weeks. The same reporting contrasted xlc stock’s performance with individual constituents such as AT&T, which had lagged the S&P 500 and xlc stock during that period (source: Barchart reporting as of Jan 27, 2026).
Barchart commentary highlighted company-level news that affected sector returns. For example, AT&T reported Q3 2025 results and subsequent analyst commentary led to price volatility; in the same timeframe, streaming and media names delivered differentiated returns that supported xlc stock’s overall gain (source: Barchart, reporting dates Oct 22, 2025 and Jan 26, 2026 in associated coverage).
Individual company events—earnings surprises, legal settlements, or large M&A bids—can move xlc stock materially because large constituents carry significant weights in the index. Examples from recent months included streaming platform earnings and large media deal activity, which were cited by market-data providers as drivers of sector sentiment (sources: Barchart and related reporting as of Jan 2026).

All date-stamped claims above are based on market-data provider reporting; consult the original articles and the issuer’s announcements for full context.

Where to find live data and official documents

Primary sources for the most current information on xlc stock:

State Street Global Advisors (SPDR) fund page and fact sheet
Fund prospectus and regulatory filings (issuer and SEC)
Major market-data platforms and financial news providers (for intraday prices, historical data, and analyst commentary)

When reviewing live data, note the reporting timestamp so that AUM, NAV, expense ratio, and holdings are correctly dated.

References

Sources used to assemble this guide (consult these providers for detailed, time-stamped data):

State Street Global Advisors (SPDR) fund page for XLC
Yahoo Finance XLC quote and historical pages
Finviz XLC profile
Morningstar XLC portfolio and metrics pages
Robinhood XLC profile
Nasdaq XLC overview and filings
CNBC XLC quote coverage
Investing.com XLC historical data
StockAnalysis XLC profile
Barchart reporting and articles (news coverage cited with Jan 2026 and Oct 2025 dates)
Fund prospectus and SEC filings (issuer documents)

As of Jan 27, 2026, the dates and figures cited above reflect the latest available public reporting from the sources listed. For day-to-day trading data and fund documents, always confirm with the issuer or an official filing.