This ETF offers targeted exposure to U.S. companies operating in the software and services sector, delivering precise access to a relatively narrow corner of the technology industry. Within this sub-sector, holdings are actually somewhat balanced; XSW includes exposure to application software stocks, Internet software and services companies, data processing firms, systems software manufacturers, IT consulting companies, and makers of home entertainment software. Given this targeted focus, XSW probably has limited appeal to investors looking to build a long-term portfolio; this ETF is likely more useful for those looking to establish a tactical overweight position to this corner of the market.
There are a couple aspects of XSW that are noteworthy. First, this ETF is linked to an equal-weighted index, a feature that results in a balanced portfolio and lack of company-specific concentration. XSW is also very cheap considering the granularity of exposure offered; while there are cheaper broad-based funds in the Technology Equities ETFdb Category (such as XLK and FTQ), this fund is a good bet for investors keeping an eye on fees.
XSW is a very targeted product, and as such isn’t optimal for every investor. But for those seeking exposure to software firms, the index construction methodology and cost efficiency make XSW an appealing option.
| Segment | Equity: U.S. Software & Services |
| Category | Sector |
| Focus | Information Technology |
| Niche | Software & Services |
| Strategy | Equal |
| Weighting Scheme | Equal |
This section compares how balanced and deep this ETF is relative to its peers.
| XSW | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Number of Holdings | 148 | 63 | 91 |
| % of Assets in Top 10 | 8.27% | 50.92% | 22.40% |
| % of Assets in Top 15 | 12.12% | 63.94% | 30.80% |
| % of Assets in Top 50 | 38.00% | 94.02% | 71.51% |
| XSW | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Large (>12.9B) | 30.38% | 63.82% | 48.49% |
| Mid (>2.7B) | 43.20% | 17.99% | 38.05% |
| Small (>600M) | 23.89% | 8.13% | 12.10% |
| Micro (<600M) | 2.48% | 2.08% | 1.27% |
This section compares the P/E ratio of this ETF to its peers.
This section compares the dividend yield of this ETF to its peers.
| XSW | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Dividend | $ 0.14 | $ 0.31 | $ 0.05 |
| Dividend Date | 2024-06-24 | N/A | N/A |
| Annual Dividend Rate | $ 0.14 | $ 0.64 | $ 0.05 |
| Annual Dividend Yield | 0.07% | 1.91% | 0.02% |
View charts featuring XSW price and volume data.
View charts featuring ETF fund flow data.
5 Day Net Flows: 17.02 M 1 Month Net Flows: 42.52 M 3 Month Net Flows: 89.88 M 6 Month Net Flows: 86.96 M 1 Year Net Flows: 73.89 M 3 Year Net Flows: 88.63 M 5 Year Net Flows: 104.47 M 10 Year Net Flows: 249.71 MView charts that break down the influence that fund flows and price had on overall assets.
5 Day Net AUM Change: 13.52 MThe adjacent table gives investors an individual Realtime Rating for XSW on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETF Database Pro members, shows the ETF in the Technology Equities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETF Database Pro. To view information on how the ETF Database Realtime Ratings work, click here.
This section compares the cost efficiency of this ETF to its peers.
| Max ST Capital Gains Rate | 39.60% |
| Max LT Capital Gains Rate | 20.00% |
| Tax On Distributions | Qualified dividends |
| Distributes K1 | No |
This section shows how this ETF has performed relative to its peers. Returns over 1 year are annualized.
| XSW |
ETF Database
Category Average |
Factset Segment
Average |
|
|---|---|---|---|
| 1 Month Return | -4.24% | -2.72% | -3.96% |
| 3 Month Return | 14.75% | 7.86% | 14.80% |
| YTD Return | 0.31% | 2.39% | 1.29% |
| 1 Year Return | 31.30% | 29.93% | 28.06% |
| 3 Year Return | 7.73% | 4.16% | 3.66% |
| 5 Year Return | 12.37% | 6.20% | 10.95% |
The following charts reflect the geographic spread of XSW's underlying holdings.
| Region | Percentage |
|---|---|
| North, Central and South America | 100.06% |
| Country | Percentage |
|---|---|
| United States | 98.73% |
| Ireland | 0.72% |
| Israel | 0.56% |
| Other | 0.05% |
The following charts reflect the allocation of XSW's underlying holdings.
| Sector | Percentage |
|---|---|
| Technology Services | 96.54% |
| Electronic Technology | 1.74% |
| Commercial Services | 1.06% |
| Consumer Services | 0.67% |
| Miscellaneous | 0.05% |
| Market Cap | Percentage |
|---|---|
| Mid | 43.2% |
| Large | 30.38% |
| Small | 23.89% |
| Micro | 2.48% |
| Region | Percentage |
|---|
| Asset | Percentage |
|---|---|
| Share/Common/Ordinary | 100.01% |
| Open-ended Fund | 0.05% |
| Sector | Percentage |
|---|---|
| Technology Services | 96.54% |
| Electronic Technology | 1.74% |
| Commercial Services | 1.06% |
| Consumer Services | 0.67% |
| Miscellaneous | 0.05% |
This section shows how the volatility of this ETF compares to the peer group ETF Database Category.
| 5 Day Volatility | 102.62% |
| 20 Day Volatility | 27.18% |
| 50 Day Volatility | 28.82% |
| 200 Day Volatility | 23.84% |
| Beta | 1.13 |
| Standard Deviation | 16.63% |
ETF Database's Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund. Includes new analyst insights and classification data.
Fact sheets are issued by the ETF provider and framed by ETF Database. Information contained within the fact sheet is not guaranteed to be timely or accurate.
Here is a look at the 25 best and 25 worst ETFs from the past year. Traders can use this list to...
There is a lot of uncertainty in the markets given changes in fiscal and monetary policy. To...
For many of us, a new year often means a new chance to start fresh in our battle with weight....
ETF Trends and ETF Database , the preeminent digital platforms for ETF news, research, tools, video, webcasts, native content channels, and more. The ETF Trends and ETF Database brands have been trusted amongst advisors, institutional investors, and individual investors for a combined 25 years. The firms are uniquely positioned to aid advisor’s education, adoption, and usage of ETFs, as well as the asset management community’s transition from traditionally analog to digital interactions with the advisor community.
Our team at ETF Database is committed to making our website the premier source of information on ETF investing with the world’s highest quality ETF tools, content, and resources.
ETF Database analysts have a combined 50 years in the ETF and Financial markets, covering every asset class and investment style. The team monitors new filings, new launches and new issuers to make sure we place each new ETF in the appropriate context so Financial Advisors can construct high quality portfolios.
Copyright © 2025 FactSet Research Systems Inc. All rights reserved.
A long-running debate in asset allocation circles is how much of a portfolio an investor should...
In a digital age where information moves in milliseconds and millions of participants can transact...