Technology Select Sector SPDR® Fund Guide (XLK) and Details

Overview

The Technology Select Sector SPDR® Fund (XLK) gives investors a focused route into US technology shares. Its portfolio includes familiar large-cap names across semiconductors, software and hardware, but substantial exposure to its biggest holdings means its results can be shaped by a relatively small group of companies.

Category

XLK offers exposure to the technology sector through a portfolio spanning semiconductors, software, hardware and related businesses. This theme connects companies that develop computing components and systems with those providing software and technology services. The focused approach gives investors a direct sector lens, but does not provide the breadth of a whole-market fund.

Technology-sector funds can provide focused exposure to businesses involved in semiconductors, software, hardware and digital infrastructure. That focus also means returns may be sensitive to changes in technology spending, competition, company expectations and investor appetite for growth shares. XLK’s concentrated portfolio makes the fortunes of its largest holdings particularly relevant.

Key facts

Ticker

XLK

Exchange

US

ISIN

US81369Y8030

Provider

State Street Investment Management

Domicile

United States

Currency

USD

Inception date

1998-12-16

Use of income

NA

UCITS

No

Holdings count

50

Costs

TER

0.09%

Net expense ratio

0.09%

AUM

130.2B

XLK’s stated expense ratio is 0.09%. Australian investors should also consider any brokerage, currency-conversion and tax costs associated with holding a US-listed ETF.

Performance

YTD

39.3%

1 year

39.7%

3 years

34.6%

5 years

21.3%

10 years

24.9%

Dividend yield

0.41%

Top 10 concentration

64.8%

Holdings

1. NVIDIA Corporation15.38%

   Ticker

   NVDA

   Sector

   Technology

   Country

   United States

2. Apple Inc.13.58%

   Ticker

   AAPL

   Sector

   Technology

   Country

   United States

3. Microsoft Corporation11.11%

   Ticker

   MSFT

   Sector

   Technology

   Country

   United States

4. Advanced Micro Devices Inc5.31%

   Ticker

   AMD

   Sector

   Technology

   Country

   United States

5. Broadcom Inc4.99%

   Ticker

   AVGO

   Sector

   Technology

   Country

   United States

6. Micron Technology Inc4.06%

   Ticker

   MU

   Sector

   Technology

   Country

   United States

7. Intel Corporation3.16%

   Ticker

   INTC

   Sector

   Technology

   Country

   United States

8. Cisco Systems Inc2.44%

   Ticker

   CSCO

   Sector

   Technology

   Country

   United States

9. Palantir Technologies Inc.2.40%

   Ticker

   PLTR

   Sector

   Technology

   Country

   United States

10. Applied Materials Inc2.39%

    Ticker

    AMAT

    Sector

    Technology

    Country

    United States

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

The portfolio is entirely allocated to technology shares by sector, with most of its regional exposure in North America. Its largest positions are NVIDIA at 15.377%, Apple at 13.578% and Microsoft at 11.109%. Semiconductor companies feature prominently among the leading holdings, alongside software, hardware and communications-equipment businesses. The ten largest positions together represent 64.799% of assets.

Regions

• North America95.5%

• Asia Emerging0.3%

• Latin America0.2%

• Japan0.0%

• Australasia0.0%

• Asia Developed0.0%

• United Kingdom0.0%

• Europe Emerging0.0%

• Europe Developed0.0%

• Africa/Middle East0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Asset allocation

• Stock US98.1%

• Stock non-US0.6%

• Cash0.1%

• Bond0.0%

• Other0.0%

• NotClassified0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Sectors

• Technology100.0%

• Energy0.0%

• Utilities0.0%

• Healthcare0.0%

• Industrials0.0%

• Real Estate0.0%

• Basic Materials0.0%

• Consumer Cyclicals0.0%

• Consumer Defensive0.0%

• Financial Services0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Related ETFs

Compared with broader technology-sector ETFs, XLK’s portfolio is notable for its concentration in a small number of the largest companies. Comparing holdings, sector definitions, costs and currency exposure can help explain differences between funds with a similar technology focus.

Risks

Who it may suit

XLK may interest investors researching focused exposure to US technology shares and who understand that sector funds can be more concentrated than broad-market ETFs. Its US-dollar trading currency and heavy weighting to a handful of large companies are relevant considerations for Australian investors. This is general information, not personal financial advice.

Key risks

XLK is a sector-focused fund rather than a broadly diversified share-market portfolio. Its largest ten holdings represent 64.799% of assets, and its top positions are predominantly large US technology companies. This concentration can magnify the effect of company-specific setbacks or a sector-wide downturn. Australian investors also face US-dollar currency exposure, and the supplied historical returns do not predict future performance.

FAQ