Recent Meta sell-off sends communications ETF XLC to 52-week low
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The Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) touched a 52-week trading low on Tuesday as the fund hit $69.45 a share. It bounced off that level and regained $70 a share later in the morning.
XLC found itself -10.7% in 2022 and off 19.5% from its record high price of $86.36 on Sept. 1, 2021.
The fund offers investors exposure to companies from telecommunication services, media, entertainment and interactive media & services. It has dropped lately because its largest holding, Meta Platforms (NASDAQ:FB), has plummeted 34.1% in 2022, weighed down by a disastrous earnings report it released. FB represents 17.1% of XLC.
Furthermore, the communications sector is down 11% YTD and is the worst-performing S&P 500 segment. The sector has faced problems for a longer period of time, as the group is up only +0.9% over a yearly period. This marks worst market sector performance over a one-year time frame.
Since XLCâs record high, the fund has seen $746.43M exit the door as investor capital has looked elsewhere.
XLC wasn't alone in its weak recent performance. Other communications ETFs find themselves in similar situations. The Vanguard Telecom Services ETF (NYSEARCA:VOX) is -10.1% YTD, and the iShares Global Telecom ETF (NYSEARCA:IXP) is down 7.4% on the year.

Meta Platformsâ recent disappointing quarterly report and outlook sent reverberations throughout the exchange traded fund marketplace as the company is weighted heavily in multiple communications sector-based funds.