Communication Services Select Sector SPDR (NYSEARCA: XLC).

 t’s one of the oldest pearls of wisdom on Wall Street, and for good reason. You see, often the sectors that have been bloodied the most one year are the ones that come back the strongest the next year. So, with this bloody notion in mind, I present to you the Communication Services Select Sector SPDR (NYSEARCA: XLC). 


XLC tracks a market-cap-weighted index of US telecommunication and media & entertainment components of the S&P 500 index. The Communication Services Select Sector SPDR Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Communication Services Select Sector Index. 

It seeks to provide an effective representation of the communication services sector of the S&P 500 Index and to provide precise exposure to companies from telecommunication services, media, entertainment and interactive media and services. It also allows investors to take strategic or tactical positions at a more targeted level than traditional style-based investing. 

The fund generally invests its assets in the securities making up the index. The index includes stocks that have been identified as Communication Services companies by the GICS (Global Industry Classification Standard), including securities of companies from the following industries: diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services. The fund is non-diversified. 

 

Source: www.stockcharts.com 

As of this writing, the fund trades around $51.44 a share, giving it a 1.10% distribution yield. Its expense ratio is 0.10%, meaning it is relatively inexpensive to hold compared to other exchange-traded funds. 

However, as with any opportunity, potential investors should conduct their own due diligence in deciding whether this fund fits one’s own individual investing needs and portfolio goals. 

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