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XLK ETF — Holdings & Analysis

The State Street Technology Select Sector SPDR ETF (XLK) offers highly concentrated exposure to the U.S. information technology sector, tracking the Technology Select Sector Index. With a substantial $117.98 billion in assets under management and an exceptionally low expense ratio of 0.08%, XLK stands out for its cost-efficiency and significant market presence. Its strategy involves full replication of its underlying index, focusing predominantly on mega-cap technology companies like NVIDIA, Apple, and Microsoft, which collectively represent a significant portion of its portfolio.

State Street Technology Select Sector SPDR ETF (XLK) ETF — Price, Holdings & Analysis

The State Street Technology Select Sector SPDR ETF (XLK) offers highly concentrated exposure to the U.S. information technology sector, tracking the Technology Select Sector Index. With a substantial $117.98 billion in assets under management and an exceptionally low expense ratio of 0.08%, XLK stands out for its cost-efficiency and significant market presence. Its strategy involves full replication of its underlying index, focusing predominantly on mega-cap technology companies like NVIDIA, Apple, and Microsoft, which collectively represent a significant portion of its portfolio.

ETF Overview

The Select Sector SPDR Trust - State Street Technology Select Sector SPDR ETF is an exchange traded fund launched by State Street Global Advisors, Inc. It is managed by SSGA Funds Management, Inc. The fund invests in public equity markets of the United States. It invests in stocks of companies operating across information technology sectors. It invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the Technology Select Sector Index, by using full replication technique. The Select Sector SPDR Trust - State Street Technology Select Sector SPDR ETF was formed on December 16, 1998 and is domiciled in the United States.
The State Street Technology Select Sector SPDR ETF (XLK) is designed to provide targeted exposure to the U.S. information technology sector, as defined by the Technology Select Sector Index. Launched on December 16, 1998, this ETF employs a full replication technique to mirror the performance of its benchmark, investing in public equity markets within the United States. Its mandate includes investing in both growth and value stocks across a diversified range of market capitalizations within the information technology space, although its current composition shows a strong bias towards large and mega-cap companies. As of 2026-06-30, XLK holds 74 distinct securities, with a pronounced concentration in its top holdings. For instance, NVIDIA Corp (NVDA) accounts for 14.80% of the portfolio, Apple Inc (AAPL) 13.23%, and Microsoft Corp (MSFT) 8.79%. This means the top three holdings alone comprise over 36% of the fund's assets, demonstrating a high degree of concentration in a few dominant technology players. The fund's sector allocation is almost entirely dedicated to Technology at 99.7%, with minimal exposure to other sectors. Geographically, its focus is overwhelmingly on the United States, representing 97.6% of its country exposure. This strategy makes XLK particularly suited for investors seeking a pure-play, cost-effective vehicle for accessing the performance of the largest and most influential U.S. technology companies, rather than a diversified broad-market or global technology fund.

Risk Metrics

Investing in the State Street Technology Select Sector SPDR ETF (XLK) involves specific risks primarily stemming from its highly concentrated nature and sector-specific focus. The fund's portfolio, while holding 74 companies, exhibits significant concentration risk, with its top three holdings—NVIDIA Corp (14.80%), Apple Inc (13.23%), and Microsoft Corp (8.79%)—collectively representing 36.82% of its assets. The top ten holdings further amplify this, accounting for 62.73% of the total portfolio. This means the fund's performance is heavily reliant on the fortunes of a relatively small number of mega-cap technology companies. Furthermore, XLK carries substantial sector risk, with 99.7% of its assets allocated to the Technology sector. This makes the ETF highly susceptible to downturns, regulatory changes, or shifts in consumer sentiment specifically impacting the technology industry, potentially leading to higher volatility compared to more diversified funds. The fund's 3-year Beta of 1.42 indicates that it has historically been 42% more volatile than the broader market, suggesting a higher potential for both gains and losses. While the expense ratio of 0.08% is remarkably low, minimizing expense drag on returns, the inherent risks associated with its concentrated, sector-specific exposure and higher volatility profile are key considerations for potential investors. Past performance does not guarantee future results.

Expense Ratio

0.08%

Top Holdings

Sector Allocation

  • Technology: 99.7%
  • Energy: 0.2%
  • Cash & Others: 0.1%
  • Industrials: 0.1%
  • United States: 97.6%
  • Singapore: 1.6%
  • Netherlands: 0.4%
  • Ireland: 0.3%
  • Other: 0.1%

Dividend Yield

0.61%

Risk Metrics

  • Beta: 1.42

Questions & Answers

What is XLK and what does it track?

The State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund launched by State Street Global Advisors, Inc. on December 16, 1998. It is designed to provide investors with focused exposure to the U.S. information technology sector. The fund achieves this by tracking the performance of the Technology Select Sector Index, using a full replication strategy. This means it aims to hold all the securities in the index in approximately the same weights, investing in public equity markets of the United States across companies operating in information technology sectors, encompassing both growth and value stocks.

What is the expense ratio for XLK?

The expense ratio for the State Street Technology Select Sector SPDR ETF (XLK) is 0.0800% as of 2026-06-30. This is notably low when compared to the broader category average for equity ETFs, which often hovers around 0.44%. This extremely competitive expense ratio means that investors in XLK incur minimal costs for management and operations, allowing a larger portion of the fund's returns to be retained by shareholders. Such a low fee structure is a significant advantage for long-term investors.

What are the top holdings in XLK?

As of 2026-06-30, the State Street Technology Select Sector SPDR ETF (XLK) holds 74 securities, with a significant concentration in its largest components. The top five holdings are NVIDIA Corp (NVDA) at 14.80%, Apple Inc (AAPL) at 13.23%, Microsoft Corp (MSFT) at 8.79%, Micron Technology Inc (MU) at 5.58%, and Broadcom Inc (AVGO) at 5.49%. These five companies collectively represent over 47% of the fund's total assets, highlighting XLK's focus on major players within the U.S. technology sector.

Is XLK a good long-term investment?

XLK offers a highly concentrated, low-cost exposure to the U.S. information technology sector, which has historically demonstrated strong growth. Its substantial AUM of $117.98 billion and an exceptionally low expense ratio of 0.08% are attractive features for long-term holding, minimizing cost drag. However, its 3-year Beta of 1.42 indicates higher volatility compared to the broader market, and its near-exclusive 99.7% allocation to technology means it carries significant sector-specific risk. Investors considering XLK for the long term should evaluate their risk tolerance for concentrated sector exposure and higher volatility. Past performance does not guarantee future results.

How does XLK compare to similar ETFs?

XLK distinguishes itself among technology ETFs primarily through its sector-specific focus and highly competitive expense ratio. Unlike broader technology funds that might include communication services or global tech companies, XLK strictly adheres to the U.S. information technology sector as defined by its underlying index. Its 0.08% expense ratio is significantly lower than many peers, offering a cost-efficient way to access this segment. With $117.98 billion in AUM, it is also one of the largest and most liquid ETFs in its category, providing efficient trading. Its strategy is characterized by a high concentration in a few mega-cap tech companies, which differs from more diversified tech funds.

Does XLK pay dividends?

Yes, the State Street Technology Select Sector SPDR ETF (XLK) does pay dividends. As of 2026-06-30, the fund has a dividend yield of 0.61%. While not primarily sought for income, this yield reflects the dividend distributions from its underlying holdings, which include established technology companies that often return capital to shareholders. The dividend payments contribute to the overall total return of the ETF, though the primary investment objective remains capital appreciation from the growth of the technology sector.