SPDR S&P Software & Services ETF

XSW

Market cap $475M

Looking for broad exposure to the Technology - Software segment of the equity market? You should consider the SPDR S&P Software & Services ETF (XSW), a passively managed exchange traded fund launched on September 28, 2011.

AI's rapid adoption, steady software demand, and the sector's long-term growth potential put focus on ETFs like IGV and XSW.

The SPDR S&P Software & Services ETF (XSW) was launched on 09/28/2011, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.

AI is fundamentally disrupting the software industry, lowering barriers to entry and intensifying competition, especially for mid-sized companies. Large software firms with strong moats, brand power, and data — like Microsoft, Salesforce, Spotify and Palo Alto Networks — are better positioned to adapt and benefit from AI. IGV ETF is preferable due to its concentration in resilient, leading software companies likely to withstand and capitalize on AI-driven changes; I rate IGV as hold.

XSW offers diversified exposure to the software sector, balancing large, mid, and small caps, unlike concentrated large-cap peers like VGT. The fund is well-positioned to benefit from accelerating A.I. adoption and robust software industry growth, especially in SaaS and digitalization trends. Attractive valuation metrics and a lower P/E than broader IT ETFs provide compelling growth at a reasonable price, despite moderate liquidity risks.

Designed to provide broad exposure to the Technology - Software segment of the equity market, the SPDR S&P Software & Services ETF (XSW) is a passively managed exchange traded fund launched on September 28, 2011.

Tariff tensions loom, but tech ETFs like XLK, CIBR, CLOU and SMH could benefit from AI growth and cybersecurity demand.

Making its debut on 09/28/2011, smart beta exchange traded fund SPDR S&P Software & Services ETF (XSW) provides investors broad exposure to the Technology ETFs category of the market.

Launched on 09/28/2011, the SPDR S&P Software & Services ETF (XSW) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Software segment of the equity market.

The global software market is projected to grow at an 11.3% CAGR through 2030, driven by AI, cybersecurity, IoT, and digital transformation technologies. The XSW ETF's equal-weight strategy results in lower top-holding weightings and underperformance compared to more concentrated funds like the IGV ETF. The IGV ETF, with a concentrated portfolio and strong historical returns (a 10-year avg. annual return of 16.8%), is better positioned for capital appreciation despite a slightly higher expense fee.