ETF Report: STATE STREET(R) US SECTOR ROTATION ETF (XLSR)

What this ETF is trying to do

The STATE STREET(R) US SECTOR ROTATION ETF (ticker: XLSR) is an exchange-traded fund designed to invest in different sectors of the U.S. economy. Based on its holdings, it provides exposure to various industries through other sector-specific ETFs and individual companies.

What the numbers show

The current price of XLSR is $67.65. When looking at how the share price has moved, we can see different types of returns:

• Year-to-Date (YTD): The price return is approximately 8.57%. The total return, which includes distributions, is approximately 8.89%.

• One-Year: The price return was approximately 12.20%. The total return was approximately 12.68%.

• Three-Year: The price return was approximately 62.15%. The total return was approximately 64.81%.

An estimated price from roughly one year ago was $60.30. Because the total return is higher than the price return in these periods, it shows that distributions added to the overall value.

Top Holdings

The following are the top holdings in this fund (note that this is a partial list):

• STATE STREET® TECHSELSECTSPDR® ETF: 26.05%

• STATE STREET® INDSTRLSELSECTSPDR® ETF: 19.01%

• STATE STREET® CNSMRSTPSELSECTSPDR® ETF: 7.68%

• STATE STREET® ENGYSELSECTSPDR® ETF: 5.88%

• ALPHABET INC CLASS A: 5.82%

• NVIDIA CORP: 4.79%

• ALPHABET INC CLASS C: 4.49%

• APPLE INC: 4.13%

• STATE STREET® HLTHCRSELSECTSPDR® ETF: 3.72%

• META PLATFORMS INC CLASS A: 3.25%

Income and distribution explanation

XLSR provides cash distributions to investors. The distribution yield is approximately 0.3951%. This means the cash paid out is a small percentage of the ETF's price. The fund usually pays these distributions quarterly, with 4 payments made over the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, the fund has an erosion-risk score of 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown positive price returns over the one-year and three-year periods.

• The income rating score is 84, which is a grade of "A."

Cons

• The distribution yield (0.3951%) is relatively low compared to some other types of income-focused funds.

Beginner takeaway

XLSR is an ETF that tracks different sectors of the market. It has experienced share-price growth over the last year and three years. While it pays regular distributions, the yield is modest. The data shows no signs of significant price erosion.