What Is XSD? SPDR S&P Semiconductor ETF

XSD is the SPDR S&P Semiconductor ETF, managed by State Street Global Advisors. It tracks the S&P Semiconductor Select Industry Index, a modified equal-weight benchmark of about 40 US-listed semiconductor companies that span large, mid, and small caps.

The defining feature is equal weighting. Rather than letting a few megacaps dominate, XSD gives each holding a similar slice, so a smaller chip designer can carry nearly the same weight as an industry giant. That makes XSD a broad, unconcentrated way to own the semiconductor sector.

Approximate weights as of mid-2026; refresh quarterly from State Street Global Advisors (SPDR)'s fund page. Each ticker links to its individual stock guide in Walnut.

XSD holds roughly 40 stocks, with top positions including Penguin Solutions, MaxLinear, Ambarella, Astera Labs, Impinj, Allegro MicroSystems, AMD, Credo Technology, Texas Instruments, and Micron. Because of the equal-weight method, individual positions typically sit between about 2.5% and 3.2%.

The portfolio is almost entirely technology and heavily weighted to the United States. It mixes established manufacturers like Texas Instruments and Micron with faster-growing connectivity and AI-infrastructure names, giving exposure across the full semiconductor value chain rather than just the largest players.

The main alternatives are the cap-weighted VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX). In those funds, a handful of megacaps such as Nvidia, Broadcom, and TSMC can make up a large share of assets, so their performance closely tracks the biggest chip stocks.

XSD takes the opposite approach with equal weighting. It offers more diversification across the industry and higher exposure to small and mid-cap names, which can help when smaller stocks lead but hurt when megacaps drive the rally. The 0.35% fee is competitive with these peers.

XSD's returns hinge on the semiconductor cycle, which is inherently boom and bust. Demand tied to AI, data centers, autos, and consumer electronics drives up-cycles, while inventory gluts and slowing capex drive downturns. Because XSD leans toward smaller names, it can outperform in broad sector rallies and underperform when only the megacaps move.

The long-term outlook for chips is supported by structural demand from AI infrastructure and electrification, but the path is volatile. XSD gives investors a diversified way to participate, though its equal-weight tilt means it will not simply mirror the mega-cap-led moves that dominate cap-weighted funds.

XSD may fit investors who want broad semiconductor exposure without concentrating in a few megacaps, and who can tolerate the volatility of a cyclical, single-sector fund weighted toward smaller companies. It works better as a satellite tilt than as a core holding.

Walnut is not an investment adviser. This page is descriptive information, not a recommendation. Whether XSD suits your portfolio depends on your goals, time horizon, and risk tolerance, so consider doing your own research or speaking with a licensed professional before investing.

XSD trades on NYSE Arca and is available through any major brokerage, including Robinhood, Fidelity, Schwab, and Public. Many of these brokers support fractional shares, so you can start with a small dollar amount rather than buying a full share.

If you use Walnut, you can connect your broker to track XSD alongside your baskets and other holdings. Walnut keeps the connection read-only unless you approve a trade, and any orders are placed through and settle at your own broker.

ETFs are passive bundles; thematic baskets in Walnut let you concentrate within them. If you hold XSD as a core position, these are the themes you might layer on as satellites.

XSD is a satellite chip play, not a core holding. Its 0.35% fee sits below SMH (0.35%) roughly in line and above cap-weighted rivals only slightly, while its equal-weight design trades away mega-cap dominance for broader, more volatile exposure to smaller semiconductor names. Best used as a tactical tilt toward the whole industry rather than the megacaps.

Whether XSD 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 XSD a buy?

XSD yields ~0.6% 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 XSD dividend: yield and schedule.