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Should You Invest in the SPDR NYSE Technology ETF (XNTK)?
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The SPDR NYSE Technology ETF (XNTK - Free Report) was launched on 09/25/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $390.61 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. XNTK seeks to match the performance of the NYSE Technology Index before fees and expenses.
The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.66%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 70.50% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Micron Technology Inc. (MU - Free Report) accounts for about 3.74% of total assets, followed by International Business Machines Corporation (IBM - Free Report) and Intel Corporation (INTC - Free Report) .
The top 10 holdings account for about 33.89% of total assets under management.
Performance and Risk
The ETF has lost about -37.30% so far this year and is down about -33.29% in the last one year (as of 07/12/2022). In that past 52-week period, it has traded between $100.82 and $175.28.
The ETF has a beta of 1.20 and standard deviation of 32.76% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR NYSE Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XNTK is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $39.23 billion in assets, Vanguard Information Technology ETF has $41.32 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the SPDR NYSE Technology ETF (XNTK)?
The SPDR NYSE Technology ETF (XNTK - Free Report) was launched on 09/25/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $390.61 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. XNTK seeks to match the performance of the NYSE Technology Index before fees and expenses.
The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.66%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 70.50% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Micron Technology Inc. (MU - Free Report) accounts for about 3.74% of total assets, followed by International Business Machines Corporation (IBM - Free Report) and Intel Corporation (INTC - Free Report) .
The top 10 holdings account for about 33.89% of total assets under management.
Performance and Risk
The ETF has lost about -37.30% so far this year and is down about -33.29% in the last one year (as of 07/12/2022). In that past 52-week period, it has traded between $100.82 and $175.28.
The ETF has a beta of 1.20 and standard deviation of 32.76% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR NYSE Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XNTK is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $39.23 billion in assets, Vanguard Information Technology ETF has $41.32 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.