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Should You Invest in the SPDR NYSE Technology ETF (XNTK)?
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Designed to provide broad exposure to the Technology - Broad segment of the equity market, the SPDR NYSE Technology ETF (XNTK - Free Report) is a passively managed exchange traded fund launched on 09/25/2000.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 4, placing it in top 25%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $835.98 million, making it one of the larger 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 0.42%.
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 64.80% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 5.50% of total assets, followed by Broadcom Inc (AVGO - Free Report) and Taiwan Semiconductor Sp Adr (TSM - Free Report) .
The top 10 holdings account for about 36.41% of total assets under management.
Performance and Risk
The ETF return is roughly 21.14% and it's up approximately 42.70% so far this year and in the past one year (as of 10/08/2024), respectively. XNTK has traded between $129.70 and $204.18 during this last 52-week period.
The ETF has a beta of 1.23 and standard deviation of 28.88% 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 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XNTK is an outstanding 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 $69.33 billion in assets, Vanguard Information Technology ETF has $76.66 billion. XLK has an expense ratio of 0.09% 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)?
Designed to provide broad exposure to the Technology - Broad segment of the equity market, the SPDR NYSE Technology ETF (XNTK - Free Report) is a passively managed exchange traded fund launched on 09/25/2000.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 4, placing it in top 25%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $835.98 million, making it one of the larger 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 0.42%.
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 64.80% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 5.50% of total assets, followed by Broadcom Inc (AVGO - Free Report) and Taiwan Semiconductor Sp Adr (TSM - Free Report) .
The top 10 holdings account for about 36.41% of total assets under management.
Performance and Risk
The ETF return is roughly 21.14% and it's up approximately 42.70% so far this year and in the past one year (as of 10/08/2024), respectively. XNTK has traded between $129.70 and $204.18 during this last 52-week period.
The ETF has a beta of 1.23 and standard deviation of 28.88% 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 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XNTK is an outstanding 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 $69.33 billion in assets, Vanguard Information Technology ETF has $76.66 billion. XLK has an expense ratio of 0.09% 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.