At a glance
XSW charges 0.35% a year, below the 0.49% average of the 3 funds most like it (the cheapest of 4). It has $401.8M in assets, the 3rd largest of that group. Over the past year it returned +5.6% with distributions reinvested (S&P 500: +11.5%), 2nd of those 4 funds; over three years it returned +22.3% a year. At its worst it fell 36.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 24 months after the low. Its ten largest positions make up 9.8% of the fund, out of 133 in all.
The short version
SPDR S&P Software & Services ETF (XSW) is a State Street index fund that tracks the S&P Software & Services Select Industry Index, a basket of about 130 U.S. software, IT services and video game companies. Because the index uses modified equal weighting, no single stock dominates: the top 10 holdings made up 9.8% of assets as of June 30, 2026. Its 0.35% yearly cost is the lowest among the similar funds compared here.
Price history
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XSW +5.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XSW official prospectus, to Dec 31, 2025 | — | -0.91% | — | +4.10% | +14.37% | — |
| XSW price data to Oct 27, 2026 | +14.8% | +5.6% | +22.3% | +3.9% | — | +11.2% |
- Over the year to Oct 27, 2026, XSW returned +5.6%, 2nd of 4 among similar funds.
- Its 5-year annualized return was +3.9%.
- Its worst full calendar year was 2022 (-34.2%); its best was 2023 (+38.6%).
- The deepest fall in its price history was 45.4% (Nov 9, 2021 to Nov 9, 2022), recovered by Nov 11, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +14.8% | — |
| 2025 | -0.9% | -0.91% |
| 2024 | +25.8% | +25.57% |
| 2023 | +38.6% | +38.90% |
| 2022 | -34.2% | -34.29% |
| 2021 | +7.5% | +7.62% |
| 2020 | — | +52.06% |
| 2019 | — | +35.54% |
| 2018 | — | +8.88% |
| 2017 | — | +27.58% |
| 2016 | — | +9.41% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 36.8% over that stretch · deepest drop along the way 36.8%, back to its old high 24.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.1200 | -14.3% |
| 2024 | $0.1400 | -54.8% |
| 2023 | $0.3100 | +219.6% |
| 2022 | $0.0970 | -54.5% |
| 2021 | $0.2130 |
What's inside
As of Jun 30, 2026, the fund held 133 securities; the ten largest made up 9.8% of assets. It also reported 10.01% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Porch Group Inc | 1.17% | |
| Arteris Inc | 1.06% | |
| Tenable Holdings Inc | 1.01% | |
| ROBLOX Corp | 0.96% | |
| Palo Alto Networks Inc | 0.95% | |
| PAR Technology Corp | 0.94% | |
| Netskope Inc | 0.94% | |
| Varonis Systems Inc | 0.93% | |
| Digital Turbine Inc | 0.92% | |
| Mitek Systems Inc | 0.92% | |
| Qualys Inc | 0.91% | |
| Life360 Inc | 0.90% | |
| Yext Inc | 0.90% | |
| Alkami Technology Inc | 0.88% | |
| Take-Two Interactive Software Inc | 0.87% |
By country
United States 97.96%Cayman Islands 0.77%Netherlands 0.69%Ireland 0.53%By asset type
Stocks 99.96%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $48.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.30%, +16.93%, -2.99%.
How it works
SSGA Funds Management runs the fund. It tracks the S&P Software & Services Select Industry Index, which is built by S&P Dow Jones Indices. The index takes the software and services slice of the S&P Total Market Index, which measures the broad U.S. stock market. That slice covers four sub-industries: application software, systems software, IT consulting and other services, and interactive home entertainment (video games). A company must be based in the U.S. and pass size and trading tests. In most cases that means a float-adjusted market value of at least $500 million. Float-adjusted counts only the shares available to the public. The index held 132 stocks as of July 31, 2026.
The index is modified equal weighted. It gives holdings roughly similar weights instead of sizing them by market value, so smaller companies count about as much as giants. As of June 30, 2026, the largest positions were Porch Group (1.2%), Arteris (1.1%) and Tenable (1.0%), with Roblox and Palo Alto Networks just under 1%. The index rebalances quarterly. A stock is removed if its market value falls below $300 million or its trading volume gets too thin. Portfolio turnover was 51%.
The fund may use sampling, which means holding a subset of the index's stocks. Even so, it must keep at least 80% of its assets in index stocks. It may use futures to manage cash. The fund does not use leverage.
What it really costs
- XSW charges 0.35% a year, versus an average of 0.49% for the similar funds below (1st of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XSW | $36 | $113 | $197 | $443 |
In a retirement portfolio
XSW holds a single industry, swings more than the broad market and pays no income, so it may fit as a small add-on next to a diversified core.
XSW could add growth exposure to U.S. software companies, but its price swings are large. It fell 36.8% in the 2022 bear market. Its deepest drop was 45.4%, from November 2021 to November 2022, and it took about 24 months to recover. Its worst calendar year was 2022, at -34.29%. The fund did not exist in 2008, and the price history here starts after the 2020 crash, though its strongest quarter was a 35.77% gain in the quarter ending June 30, 2020. Someone who had to cash out shares during a year like 2022 would have locked in deep losses. The fund paid no distributions in the year through October 27, 2026, so it is not a source of income. Its 0.35% expense ratio is modest for a sector fund. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a small, separate slice of U.S. software, IT services and video game stocks next to a broad core fund.
- People who prefer spread-out weights: the top 10 holdings were just 9.8% of assets as of June 30, 2026.
- Cost-conscious investors: the 0.35% expense ratio is below IGV's 0.41% and the 0.49% average of similar funds compared.
Look elsewhere if
- Anyone seeking income: XSW paid no distributions in the year through October 27, 2026.
- Those who may need the money within a few years: it lost 34.29% in 2022, and its deepest drop took about 24 months to recover.
- Investors who want a fund led by the largest software companies, or who prefer a fund that spans many sectors instead of one.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Does XSW pay a dividend?
No. XSW paid no distributions in the year through October 27, 2026, so its trailing yield was 0%. The fund holds software and IT services companies, and many of them reinvest their profits in growth instead of paying dividends. Any return from owning XSW has come from price changes. Investors who need regular income from their portfolio would have to get it from other holdings or by cashing out shares.
What's the difference between XSW and IGV?
Both focus on software stocks, but they differ in cost, size and makeup. XSW charges 0.35% a year, compared with 0.41% for the iShares Expanded Tech-Software Sector ETF (IGV). IGV is much larger, at about $13.5 billion in net assets versus $401.8 million for XSW as of June 30, 2026. Their holdings overlapped by 32%. XSW uses modified equal weighting. Over one year, XSW returned 5.6% as of October 27, 2026, while IGV returned -8.5% as of October 30, 2026.
Is XSW good for retirement?
XSW may fit only as a small, higher-risk add-on. It does not work as a core holding or an income source. It covers a single industry, paid no distributions in the year through October 27, 2026, and fell 45.4% from November 2021 to November 2022. That drop took about 24 months to recover. A retiree who had to cash out shares in a year like 2022, when the fund lost 34.29%, would have locked in large losses.
What are XSW's top holdings?
As of June 30, 2026, the largest holdings were Porch Group (1.2%), Arteris (1.1%), Tenable Holdings (1.0%), Roblox (1.0%) and Palo Alto Networks (0.9%). Other top names included PAR Technology, Netskope, Varonis Systems, Digital Turbine and Mitek Systems. Because the index uses modified equal weighting, no single stock carries much weight. The top 10 made up just 9.8% of the fund's 133 holdings.
How has XSW performed over 10 years?
XSW returned an average of 14.37% a year over the 10 years ending December 31, 2025. Over five years the average was 4.1% a year, and over one year it was -0.91%. Calendar years ranged widely, from a 52.06% gain in 2020 to a 34.29% loss in 2022. In 2023 the fund gained 38.9%. These swings show how much a software-only fund can move from year to year.