Communication Services Select Sector SPDR Fund (XLC)
Don't Overlook the Potential of Communication Services ETFs
When the topic of sector tilts enters the conversation, one sector that might currently be flying under the radar is the communication services sector. Key Takeaways: The communication services sector has not had a breakout performance as of yet this year, but investors may be overlooking the sector's value.
XLC Is Down 8.78% Year to Date and the Catalysts That Matter Most Are Still Ahead
Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) is down 8.78% year to date, and the two stocks most responsible for that slide are the ones you need to watch most closely over the next 12 months.
XLC: Further TMT Downside Possible, Here's Where To Buy (Rating Downgrade)
XLC: Further TMT Downside Possible, Here's Where To Buy (Rating Downgrade)
Capturing Investment Themes By Mixing Sector ETFs
Today's market continues to evolve at a rapid clip. That said, traditional broad market exposure is unable to accurately capture long-term secular trends.
XLC Holds 46% in Just Three Stocks, Creating An Unusual Risk for Sector ETF Buyers
When investors buy a sector ETF, they want exposure to a specific corner of the market without picking individual stocks.
Telecom ETFs in Focus This Earnings Season
The telecom sector surges ahead of the S&P 500 as Verizon and AT&T post solid Q3 results, fueling optimism for 2025 growth.
XLC: The Valuation And Technicals Lining Up After The 20% Plunge (Rating Upgrade)
I am upgrading the Communication Services Select Sector SPDR ETF Fund from a hold to a buy, due to compelling valuation and technical indicators suggesting a near-term bottom. XLC's valuation is attractive at 17x forward earnings, significantly below its 5-year average, and its technicals indicate potential support around the $82-$83 zone. XLC is heavily weighted towards megacaps like GOOG, META, and NFLX, which command 35% of the portfolio, making their fundamentals and technicals crucial.
XLC: 2025 Could Be Third Consecutive Year Of Lofty Return For Communication Services Sector
The Communication Services Select Sector SPDR ETF Fund is poised for significant returns due to strong earnings growth, cheap valuations, and diversification. The communication services sector, led by Meta, Alphabet, and Netflix, is expected to benefit from increased internet usage, AI technology, and economic trends in 2025. XLC offers a balanced portfolio of growth and defensive stocks, with lower downside risk and higher risk-adjusted returns compared to peers.
Be careful of sector based investing themes: Strategist
As Big Bank earnings beat Wall Street's expectations, Charles Schwab chief investment strategist Liz Ann Sonders adds the financials sector (XLF) to her list of growth sectors: communication services (XLC), consumer discretionary (XLY), and tech (XLK). Despite her expectations that these four sectors will grow, the strategist tells Catalysts Co-Hosts Madison Mills and Seana Smith that only two sectors have an Outperform rating and outlines why sector-based investing may not be the best strategy.
S&P 500 Delivers Impressive 2024 Return, XLC Tops Charts: Netflix, Meta, Fox Steal The Show
The S&P 500 delivered a 23.31% return in 2024, but the communications services sector stole the spotlight.
Final Trade: XLC, M, GAP, XLE
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
XLC: Hold On, But Be Prepared To Sell
I recommend holding the Communication Services Select Sector SPDR® ETF Fund due to strong momentum since the Fed's first rate cut in September. Despite positive momentum, historical data shows the communications sector averages -8% returns in the 12 months following initial rate cuts. The ETF's current valuation at 18x earnings suggests a 5.5% downside, supporting a hold recommendation rather than a sell.
