Average Daily Volume
5.89M
Fund Overview
The Technology Select Sector SPDR Fund (XLK) is an exchange-traded fund that seeks to provide investment results that correspond generally to the price and yield performance of the Technology Select Sector Index. This index includes companies from the technology sector of the S&P 500, such as those involved in software, hardware, semiconductors, and IT services. XLK is one of the most widely traded ETFs focusing on the technology sector, offering investors exposure to industry leaders like Apple, Microsoft, and NVIDIA. The fund is designed for those seeking targeted exposure to the dynamic and fast-growing tech industry, which has been a key driver of market performance in recent years.
- Asset Class
-
Equity
- Industry
-
Broad Technology
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.73 %
- Currency Hedged
-
No
- Portfolio Turnover
-
39 %
- Dividend Date
-
Why Invest in the XLK ETF?
Potential Benefits
- Provides concentrated exposure to leading U.S. technology companies, which have historically driven market growth.
- Low expense ratio (0.10% as of 2025) compared to many actively managed tech funds.
- Highly liquid, with tight bid-ask spreads, making it easy to enter and exit positions.
- Diversification across sub-sectors within technology, including hardware, software, and semiconductors.
- Strong long-term performance track record, benefiting from tech sector innovation and growth.
Potential Risks
- Concentration risk, as top holdings (e.g., Apple, Microsoft) comprise a significant portion of the fund.
- Vulnerability to sector-specific downturns, regulatory changes, or technological disruptions.
- Higher volatility compared to broad market ETFs due to tech sector sensitivity to interest rates.
- Valuation risks, as many tech stocks trade at premium multiples relative to other sectors.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.1%
|
-3.6%
|
-4.1%
|
+20.0%
|
+19.8%
|
-0.1%
|
-8.0%
|
+6.4%
|
+5.1%
|
+3.2%
|
-
|
-
|
| 2025 |
-0.7%
|
-2.3%
|
-8.3%
|
+1.7%
|
+10.0%
|
+9.8%
|
+3.8%
|
-0.1%
|
+7.5%
|
+6.7%
|
-4.8%
|
+0.8%
|
| 2024 |
+2.7%
|
+4.7%
|
+0.8%
|
-5.8%
|
+7.1%
|
+7.8%
|
-3.3%
|
+0.7%
|
+2.6%
|
-1.6%
|
+5.2%
|
-0.4%
|
| 2023 |
+9.3%
|
+0.4%
|
+10.9%
|
-0.1%
|
+8.9%
|
+6.1%
|
+2.6%
|
-1.5%
|
-6.5%
|
0.0%
|
+12.9%
|
+4.2%
|
| 2022 |
-6.8%
|
-4.9%
|
+3.3%
|
-11.0%
|
-0.7%
|
-9.3%
|
+13.5%
|
-6.2%
|
-12.0%
|
+7.7%
|
+6.3%
|
-8.2%
|
| 2021 |
-0.8%
|
+1.4%
|
+1.8%
|
+5.2%
|
-0.9%
|
+6.9%
|
+3.9%
|
+3.6%
|
-5.8%
|
+8.2%
|
+4.5%
|
+3.2%
|
| 2020 |
+4.0%
|
-7.3%
|
-8.6%
|
+13.7%
|
+7.2%
|
+6.9%
|
+5.7%
|
+11.9%
|
-5.3%
|
-5.0%
|
+11.4%
|
+5.5%
|
| 2019 |
+6.9%
|
+6.9%
|
+4.8%
|
+6.4%
|
-8.7%
|
+8.9%
|
+3.5%
|
-1.5%
|
+1.6%
|
+3.9%
|
+5.4%
|
+4.3%
|
| 2018 |
+7.0%
|
-0.4%
|
-3.7%
|
+0.1%
|
+6.8%
|
-0.3%
|
+2.1%
|
+6.6%
|
0.0%
|
-8.0%
|
-2.0%
|
-8.4%
|
| 2017 |
+3.6%
|
+4.5%
|
+2.2%
|
+2.0%
|
+4.0%
|
-2.8%
|
+4.5%
|
+2.9%
|
+0.8%
|
+6.5%
|
+1.4%
|
+0.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
14.1 % |
|
MSFT
|
MICROSOFT CORP |
13.7 % |
|
NVDA
|
NVIDIA CORP |
13.2 % |
|
AVGO
|
BROADCOM INC |
4.4 % |
|
CRM
|
SALESFORCE INC |
3.1 % |
|
CSCO
|
CISCO SYSTEMS INC |
2.8 % |
|
ORCL
|
ORACLE CORP |
2.8 % |
|
IBM
|
INTERNATIONAL BUSINESS MACHINES CORP |
2.7 % |
|
PLTR
|
n/a |
2.3 % |
|
ACN
|
ACCENTURE PLC CLASS A |
2.3 % |
Top 10 holdings shown, out of 71 total holdings.
Related ETFs: XLK vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XLK tracks the Technology Select Sector Index, which includes technology and telecom companies from the S&P 500. The index is market-cap weighted, meaning larger companies like Apple and Microsoft have greater influence on performance. The fund holds common stocks of these companies and is passively managed, with rebalancing occurring quarterly to align with index changes. XLK provides pure exposure to tech firms, excluding newer thematic categories like fintech or electric vehicles that some competitors include.
Frequently Asked Questions
Does XLK include international technology companies?
No, XLK focuses exclusively on U.S.-listed technology companies that are part of the S&P 500.
How often does XLK rebalance its holdings?
XLK rebalances quarterly to match changes in its underlying index, the Technology Select Sector Index.
What percentage of XLK is invested in Apple and Microsoft?
As of 2025, Apple and Microsoft combined account for approximately 40-45% of XLK's holdings, reflecting their large market capitalizations.
Is XLK suitable for dividend investors?
While some XLK holdings pay dividends, the fund's yield is typically lower than broader market ETFs, as tech companies often reinvest profits into growth.
Industry Overview
The Technology Select Sector SPDR Fund (XLK) provides exposure to the U.S. technology sector, which remains a dominant force in global markets. Technology companies drive innovation across industries, from cloud computing and artificial intelligence to semiconductor manufacturing and enterprise software. Investing in XLK allows participation in this high-growth sector, though it comes with higher volatility than more defensive industries. The fund's holdings represent established leaders with strong balance sheets and global reach, making it a core holding for many growth-oriented portfolios.
Alternative Comparison
Compared to VGT (Vanguard's tech ETF), XLK has a slightly lower expense ratio (0.10% vs. 0.12%) and excludes some healthcare technology stocks that VGT includes. Unlike thematic tech ETFs like ARKK, XLK focuses on established, large-cap tech firms rather than disruptive innovation companies. XLK's approach is more conservative than SOXX (a pure-play semiconductor ETF), offering broader tech sector exposure with less concentration in chips.
Issuer Overview
XLK is issued by State Street Global Advisors (SSGA), one of the largest ETF providers globally. SSGA is known for its SPDR ETF family, which includes sector-specific, broad market, and thematic funds. The firm has extensive experience in index-based investing and is a pioneer in the ETF industry.
Conclusion
XLK remains a top choice for investors seeking core exposure to the U.S. technology sector. Its low cost, liquidity, and focus on industry leaders make it suitable for both long-term holdings and tactical allocations. While tech sector volatility requires investor patience, XLK's diversified approach within the sector helps mitigate single-stock risks.
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