Communication Services Select Sector SPDR
ALTAR
Score™
6.4% info Recommen-
dation
NEUTRAL
2019E    2020E
P/E
ratio
19.6x P/Sales
ratio
2.6x
P/BV
ratio
2.9x Div.
yield
1.0%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The Communication Services Select Sector SPDR Fund tracks a market-cap-weighted index of US telecommunication and media & entertainment components of the S&P 500 index.

FUND BASICS
Category US Equities
Fund Sponsor SSGA
Website www.sectorspdr.com
Inception date Jun 18, 2018
Assets (mns) $6,426
Currency USD
Expense ratio 13 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian
Weighting Market Cap
Index replication
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 28
Wgt avg mkt cap (mns) $375,535
Large cap (>$10bn) 93.1%
Mid cap ($2-10bn) 6.9%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
FACEBOOK 18.5 %
ALPHABET INC. CLASS C 12.1 %
ALPHABET INC. CLASS A 12.0 %
CHARTER COMMUNICATIONS, INC. CLASS 4.9 %
AT&T INC 4.6 %
WALT DISNEY CO/THE 4.5 %
NETFLIX INC 4.4 %
VERIZON COMMUNICATIONS INC 4.4 %
ACTIVISION BLIZZARD INC 4.3 %
COMCAST CORP-CL A 4.3 %
Total 74.2 %

TOP COUNTRY EXPOSURE
UNITED STATES 99.8 %










HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
23.4% 11.0% -- -- 2.6%

Market Correlations
versus... Beta R-squared
S&P500 0.92 74%
MSCI EAFE 1.00 64%
MSCI Emg. Mkts. 0.79 55%

Technical Indicators
Recent close $51.35
30d moving avg. $50.27
Annualized volatility 17.5%
Short interest (ETF) 3.6%
Relative strength (RSI) 61

Liquidity measures
Avg. volume (thou.) 2,678
Turnover 2.1%
Bid/Ask (% of price) 0.02%
ADV underlying (mns) $13,143

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Communication Services Select Sector SPDR ETF based on the alternatives' overlap in portfolio holdings with XLC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: XLC Expense: 13 bp ALTAR Score™: 6.4%


ALTERNATIVE ETFs BASED ON OVERLAP WITH XLC
Ticker Fund
Name
Overlap1
vs XLC
(%)
Expense
ratio
(bp)
Savings
vs XLC
(bp)
ALTAR
Score™
(%)
ALTAR
vs XLC
(%)
FCOM Fidelity MSCI Communication Services 76.2 8 5 5.2 -1.2
VOX Vanguard Communication Services 75.7 10 3 5.4 -1.1
EWCO Invesco S&P 500 Equal Weight Comm. Services 66.1 40 -27 8.0 +1.5
IXP iShares S&P Global Comm. Services 64.4 46 -33 6.3 -0.1
JHCS John Hancock Multifactor Media & Communications 61.6 40 -27 6.3 -0.1
IEME iShares Evolved U.S. Media and Entertainment 40.8 18 -5 6.8 +0.4
PNQI Invesco Nasdaq Internet 24.7 62 -49 2.8 -3.6
FDN First Trust DJ Internet 24.7 52 -39 3.4 -3.1
TTTN TigerShares China-U.S. Internet Titans 23.4 59 -46 3.9 -2.5
ENTR ERShares Entrepreneur 30 22.9 49 -36 4.0 -2.4
QYLD Global X NASDAQ 100 Covered Call ETF 21.2 60 -47 4.9 -1.5
QQQ Invesco QQQ 20.3 20 -7 5.2 -1.2
PBS Invesco Dyn Media Port 18.3 63 -50 6.4 -0.0
IYC iShares DJ US Consumer Services 18.2 42 -29 5.1 -1.4
TMFC Motley Fool 100 Index 18.1 50 -37 4.4 -2.0
XLG Invesco S&P Top 50 18.0 20 -7 5.2 -1.3
SOCL Global X Social Media 17.6 65 -52 4.7 -1.8
IGM iShares S&P N. American Technology 17.2 46 -33 4.6 -1.8
IYW iShares US Technology 16.9 42 -29 5.2 -1.3
IETC iShares Evolved U.S. Technology 16.4 18 -5 4.8 -1.6

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
Communication Services Select Sector SPDR
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 16.9 %
Divided by: Fwd. P/BV 2.6 x
Less: Expense ratio 13 bp
Equals: ALTAR Score 6.4 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.37 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.