📌 Table of Contents
✅ XLCI Overview
🧠 Investment Strategy & Structure
💼 Portfolio Composition
📈 Performance & Indicators
🔍 Pros & Cons
✅ Conclusion
🏷️ Recommended Tags
1. ✅ XLCI Overview
| Fund Name | Communication Services Select Sector SPDR® Premium Income Fund |
| Ticker | XLCI |
| Issuer | State Street Global Advisors (SPDR) |
| Inception Date | July 29, 2025 |
| Expense Ratio | 0.35% |
| Structure | Covered call strategy on the Communication Services Select Sector SPDR Fund (XLC) |
📌 XLCI is a thematic ETF that provides exposure to U.S. communication services sector stocks while generating additional monthly income through a covered call strategy.
2. 🧠 Investment Strategy & Structure
- The fund holds shares of XLC, which includes major U.S. communication services companies such as Meta, Alphabet, and Disney.
- Simultaneously, it sells short-term call options on XLC to generate monthly premium income.
- The strategy seeks to balance sector growth exposure with regular income generation.
- Portfolio is rebalanced quarterly; options are actively managed.
📌 This hybrid strategy allows investors to maintain exposure to growth-oriented digital communications and entertainment sectors while benefiting from consistent income.
3. 💼 Portfolio Composition (as of July 2025)
- Primary Holding:
- Communication Services Select Sector SPDR Fund (XLC): ~100% of net assets
- Minor cash, short-term treasuries, and option positions
- Sector Allocation (based on XLC components):
-
Industry SegmentWeight (%)
Interactive Media & Services ~39% Entertainment ~30.6% Media ~17.3% Telecommunications ~13.1%
📌 The fund indirectly holds large-cap communication firms through XLC, including Meta Platforms, Alphabet (Google), Disney, Netflix, Verizon, and Comcast.
4. 📈 Performance & Indicators
| NAV | $24.84 |
| Market Price | $24.85 |
| Premium/Discount | +0.12% |
| AUM (Assets) | ~$0.99 million |
| Yield | TBD (first distribution pending) |
📌 As a newly launched ETF, XLCI's yield and long-term performance data are not yet established. Market activity and distribution reports will clarify this over time.
5. 🔍 Pros & Cons
| Monthly income potential through covered calls | Limited price appreciation due to option caps |
| Exposure to leading communication/media companies | Higher expense ratio than XLC (0.35% vs 0.10%) |
| Sector diversification within a single ETF | New fund with no performance history |
| Potential downside protection in sideways markets | Low trading volume and AUM in early stage |
6. ✅ Conclusion
XLCI offers a unique opportunity for investors seeking exposure to the U.S. communication services sector—including digital media, telecom, and entertainment—while also benefiting from a regular monthly income stream through a covered call strategy.
It is particularly suitable for income-oriented investors who want to balance growth potential with cash flow.
When combined with other covered call ETFs (like JEPI, QYLD) or sector ETFs (like XLC, XLK), it can enhance portfolio diversification and income stability.
🏷️ Recommended Tags
#XLCI #CommunicationServicesETF #SPDR #CoveredCallStrategy #MonthlyIncome #DigitalMedia #TelecomETF #Meta #Alphabet #IncomeETF