ETF Evaluator: State Street® US Sector Rotation ETF () Follow This ETF

State Street® US Sector Rotation ETF Overview

State Street® US Sector Rotation ETF (XLSR) is an actively managed U.S. Equity Large Blend exchange-traded fund (ETF). State Street Investment Management launched the ETF in 2019.

The investment seeks to provide capital appreciation. The fund is a "fund of funds," meaning that it primarily invests its assets in securities of other exchange-traded funds ("ETFs"). In particular, it allocates its assets among ETFs that each focus on common stocks of companies included in an individual sector of the S&P 500® Index, as determined by the Global Industry Classification Standard (GICS®). Under normal circumstances, the fund invests at least 80% of its net assets (plus the amount of borrowings for investments purposes) directly or indirectly through the underlying ETFs, in securities of U.S. companies.

About State Street® US Sector Rotation ETF (XLSR)

There are 4 members of the management team with an average tenure of 3.89 years: Emiliano Rabinovich (2025), Jeremiah Holly (2020), Juan Acevedo (2025) and Michael Martel (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. State Street® US Sector Rotation ETF has 26 securities in its portfolio. The top 10 holdings constitute 83.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

State Street® US Sector Rotation ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. State Street® US Sector Rotation ETF has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.3% There is 0.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). State Street® US Sector Rotation ETF has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is below the $13 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

XLSR Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The State Street® US Sector Rotation ETF expense ratio is above average compared to funds in the Large Blend category. State Street® US Sector Rotation ETF has an expense ratio of 0.70%, which is 69% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. State Street® US Sector Rotation ETF has a portfolio turnover rate of 183%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 158% for the Large Blend category.

Recently, in the month of July 2026, State Street® US Sector Rotation ETF returned -1.1%, which earned it a grade of D, as the Large Blend category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

State Street® US Sector Rotation ETF has a trailing yield of 0.46%, which is below the 1.16% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

State Street® US Sector Rotation ETF Grades

Year to date, the ETF has returned 3.2%, 6.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 15.1% over the past year (grade of D), 13.7% over the past three years (grade of F) and 8.9% per year over the past five years (grade of F).

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