The SPDR S&P Software & Services ETF (XSW), a smart beta ETF with $506.02 million in assets under management and an expense ratio of 0.35%, offers exposure to the software sub-industry. XSW's largest allocation is in Information Technology at 95.7%, with top holdings including Porch Group Inc (1.28%) and Microstrategy Inc Cl A. While the ETF is up 24.96% over the last 12 months, it is down -3.77% year-to-date and carries a beta of 1.18 and a standard deviation of 27.41%, indicating a higher risk profile compared to some alternatives like IGPT and IGV.
The SPDR S&P Software & Services ETF (XSW) is a smart beta exchange-traded fund with $506.02 million in assets, offering targeted exposure to the U.S. software and services sub-industry by tracking the S&P Software & Services Select Industry Index, a modified equal-weight index. Its portfolio is heavily concentrated in the Information Technology sector, accounting for 95.7% of its assets, and while it holds approximately 140 stocks, minimizing single-stock risk with its top 10 holdings representing only 9.75%, this concentration implies limited sector diversification. XSW's expense ratio of 0.35% positions it as one of the less costly options in the Technology ETFs category. Performance data as of June 18, 2025, indicates a significant 24.96% gain over the last 12 months, contrasted by a year-to-date loss of -3.77%. The fund's risk profile is characterized as high, with a beta of 1.18 and a three-year trailing standard deviation of 27.41%, suggesting higher volatility compared to the broader market. While presented as an option for investors aiming to outperform traditional market-cap weighted technology ETFs, the inherent risks and the variable success of smart beta strategies are important considerations.
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moderately positive
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