(XLSR) SSGA U.S. Sector Rotation - Overview

The SPDR® SSGA U.S. Sector Rotation ETF (XLSR) is structured as a “fund of funds,” allocating the majority of its capital to other ETFs that each track the common-stock component of a single S&P 500 sector as defined by the GICS taxonomy. By design, at least 80 % of its net assets (plus any borrowing-related exposure) are invested-directly or indirectly-in U.S. equities via these underlying sector ETFs.

Key metrics as of the most recent Q4 2025 filing: ticker XLSR, expense ratio 0.10 % (annual), assets under management ≈ $2.5 billion, and a 30-day turnover of roughly 12 % (indicating modest rebalancing). The top sector allocations at the end of 2025 were Information Technology ≈ 22 %, Health Care ≈ 18 %, and Consumer Discretionary ≈ 15 %, reflecting the ETF’s tilt toward growth-oriented segments that have outperformed in a low-rate environment.

Sector-rotation strategies like XLSR are most sensitive to macro drivers that cause relative sector strength to shift. Recent data show that the Federal Reserve’s policy rate has been held near 4.75 % since mid-2024, keeping borrowing costs relatively stable, while Q4 2025 GDP growth of 2.1 % and a corporate earnings revision upward of 4 % YoY have bolstered cyclical sectors. Conversely, any unexpected tightening or a slowdown in consumer spending could reallocate capital toward defensive sectors (e.g., Utilities, Consumer Staples), which would be reflected in XLSR’s sector-ETF weights.

For a deeper, data-rich view of how XLSR’s sector exposures respond to evolving economic signals, you might explore the analytics platform ValueRay.