What Is XLC? State Street Communication Services Select Sector SPDR ETF

XLC is State Street Communication Services Select Sector SPDR ETF, an ETF that tracks Communication Services Select Sector Index at a 0.08% expense ratio. Tracks the communication-services sector of the S&P 500, a group that blends social media and internet platforms (Meta, Alphabet) with media, gaming, and telecom. Meta and Alphabet dominate the weighting, so it trades more like a mega-cap internet fund than a defensive telecom one.

XLC is issued by State Street SPDR and tracks Communication Services Select Sector Index, so a single ticker gives you the whole portfolio of underlying holdings weighted by the index's methodology rather than by any active stock-picking.

XLC is weighted toward its largest constituents. As of mid-2026, the top holdings are:

The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.

There are three common ways to get XLC exposure. Buy shares (or fractional shares) of XLC directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so XLC sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. XLC trades like a stock during market hours, so you buy it the same way you would any listed share.

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Whether XLC is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Communication Services Select Sector Index, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLC a buy?

XLC gives you Communication Services Select Sector Index exposure in one ticker at a 0.08% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.

Whether XLC is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLC a buy?

XLC yields ~1.21% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see XLC dividend: yield and schedule.

New to funds like XLC? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.