Share-split context: A forward split was recorded on Sep 11, 2015 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: STATE STREET(R) SPDR(R) S&P(R) SEMICONDUCTOR ETF (XSD)

What this ETF is trying to do

The XSD ETF is designed to track the semiconductor industry. Semiconductors are the tiny computer chips used in many different types of technology. This ETF holds a variety of companies involved in making these chips. Because this is a partial list, we can only see some of the companies it owns. Some of its top holdings include Astera Labs Inc, Skyworks Solutions Inc, Rambus Inc, and Advanced Micro Devices Inc.

What the numbers show

When looking at how this ETF has performed, it is important to understand two different types of returns: price return (how much the share price changed) and total return (which includes both price changes and any cash distributions paid out).

The data shows strong growth over different time periods:

• Year-to-Date (YTD): The price return is approximately 70.52%, while the total return is approximately 70.73%.

• One Year: The price return was about 66.09%, and the total return was about 66.40%.

• Three Years: The price return was approximately 181.62%, and the total return was approximately 183.68%.

This ETF has a history of "forward splits." This means that in the past, one old share became multiple new shares. When this happens, the price per share drops, but your total ownership stays the same. The returns listed above are "split-adjusted," meaning they have already been corrected so you can see the true growth.

Income and distribution explanation

Some investors look for "distributions," which is cash paid out to shareholders. XSD has a distribution yield of approximately 0.15%. It usually pays these out quarterly, and it has made four payments in the last 12 months. While distributions provide cash, they are not the same as total return.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases significantly over time. Some investors worry about this if they see a falling share price. However, for XSD, the erosion-risk score is 100, and the label says "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Strong Growth: The ETF has shown very high price and total returns over the last one, three, and five years.

• Low Erosion Risk: The data indicates no detected price erosion.

Cons

• Sector Focus: Because this ETF focuses on semiconductors, it is tied closely to the performance of one specific industry.

• Low Yield: The distribution yield is quite low (0.15%), so it may not be ideal for those looking for high regular income.

Beginner takeaway

XSD is an ETF focused on the semiconductor industry. It has experienced significant price and total returns recently. While it pays small cash distributions, its main movement comes from changes in the share price. Always remember that past performance does not guarantee what will happen in the future.