ETF Research Center

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
Total	74.2 %
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 %

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	**	**	**	**	**	**	**
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

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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	%

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.