XSW: I Still Like It But Am Downgrading This ETF

State Street SPDR S&P Software & Services ETF is downgraded from Buy to Hold after a sharp rebound but persistent underperformance. XSW's diversified, equal-weighted structure limits concentration risk, but it remains the smallest tech ETF on my watchlist and has lagged broader tech indices. Despite a recent 22% rally, XSW is down 12% in 2026 and faces headwinds from potential sector rotation and bearish technology outlooks.