State Street SPDR S&P Software & Services ETF

XSW

Market cap $414M

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

Quantum computing ETFs were the hottest names in town for months, but this is no longer the case.

Iran war reshaped Q1 markets: energy, shipping & lithium ETFs surged while tech and airlines lagged as inflation fears and oil shocks rattled sentiment.

IGV and other software ETFs could rally as easing US-Iran tensions lift supply chains, revive spending, and position tech for a rebound in April.

Nvidia's GTC 2026 reveals a transformative AI stack, accelerating SaaS's shift to GaaS and threatening seat-based revenue models, while lowering the barriers to entry. I see Monday.com, Atlassian, and HubSpot facing severe commoditization risks as Agentic AI automates workflows and erodes their competitive moats.

In just two months, the iShares Expanded Tech-Software Sector ETF fell more than 22%, taking its total decline from its peak to over 30%. In the early weeks of 2026, it seemed as though every weekend a new negative article about the sector was published.

A specter is haunting Wall Street—the specter of the “SaaSpocalypse.” Since the iShares Expanded Tech-Software Sector ETF (IGV) peaked on September 19, 2025, it has fallen roughly 30%.

I added State Street SPDR S&P Software & Services ETF to my model portfolio for its beaten-down price and attractive valuation. XSW offers diversified, equal-weighted exposure to 140 software and services stocks, avoiding heavy concentration in mega-caps. Despite a 20% YTD decline and lagging major tech benchmarks, XSW trades at a forward PE of 19x with projected 14.3% EPS growth.

A smart beta exchange traded fund, the State Street SPDR S&P Software & Services ETF (XSW) debuted on 09/28/2011, and offers broad exposure to the Technology ETFs category of the market.

Artificial intelligence (AI) has emerged as a growing source of market panic these days, with investors increasingly questioning the long-term viability of labor-intensive business models. Recent releases from AI startups have intensified these concerns by introducing tools capable of automating tasks in legal, marketing, finance, and research functions.