This article was originally published on ETFTrends.com.
Following the official debut of the communication services, the Communication Services Select Sector SPDR Fund (NYSEArca: XLC) is hauling in new assets at a rapid pace. XLC, which is just three months, is positioned to soon eclipse $2 billion in assets under management.
As of Sept. 27, the ETF had $1.87 billion in assets under management, easily making it one of the most successful ETFs to launch this year.
XLC is the first ETF dedicated to the new communication services sector. The new ETF tracks the Communication Services Select Sector Index and “seeks to provide precise exposure to companies from the media, retailing, and software & services industries in the U.S.,” according to State Street Global Advisors (SsgA).
Last year, index providers MSCI and Standard & Poor’s announced the telecommunications sectors would be renamed communications services and would add companies from the consumer discretionary and technology sectors. Tech additions include Facebook and Google parent Alphabet Inc.
Fast Start for XLC
“State Street's (STT) Communication Services Select Sector SPDR Fund (XLC) has taken in more than $683 million this week, pushing the fund's assets to just over $1.8 billion. Matt Bartolini, head of SPDR Americas Research, predicts the fund will hit $2 billion by the end of the week,” reports Bloomberg.
“State Street's SPDR sector ETFs on average hold about $13 billion in assets. The three-month-old communication services product is already closing in on the two least-popular funds in the group, which track real estate and materials stocks,” according to Bloomberg.
XLC holds 26 stocks and charges 0.13% per year, or $13 on a $10,000 investment. The ETF has seen third-quarter inflows of $1.70 billion.
For more market trends, visit ETFTrends.com.
POPULAR ARTICLES FROM ETFTRENDS.COM
- How Lehmans Collapse Started the FinTech Fire
- Your Pre-Retirement Checklist
- How to Handle Being a Breadwinning Woman
- Cannabinoids Might Unlock the Cannabis Pharmaceutical Industry
- HANetf Breaks Down Barriers to European Markets for U.S.-Based ETFs