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.