XLK Fund Description

The Technology Select Sector SPDR tracks an index of S&P 500 technology stocks.

XLK ETF.com Insight

XLK offers fairly broad exposure to the U.S. Technology segment, but its S&P 500-only portfolio tilts away from our segment benchmark. XLK includes all of the big names associated withXLK is the go-to choice in the segment. technology but also a few that seem like misfits such as Western Union, SunEdison, and Verizon. Its limited selection universe excludes small-caps, tilting heavily toward large-caps. This tilt reduces its volatility against more inclusive technology indexes and can cause some minor performance differences. XLK is one of the cheapest fund in its segment and by far the most liquid—active traders need look no further. For many investors, XLK is the go-to choice in the segment. (Insight updated 10/03/2014)

  • 1 Month

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  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

XLK
0.17% 3.25% 18.34% 22.14% 20.65% 15.14% 8.57%

XLK (NAV)
0.25% 3.32% 18.43% 22.23% 20.67% 15.20% 8.63%

S&P Technology Select Sector Index
0.26% 3.36% 18.64% 22.47% 20.92% 15.33% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

XLK Top 10 Countries

XLK Top 10 Sectors View All

XLK Top 10 Holdings View All

XLK Summary Data

Issuer SSgA

A company that produces and manages ETFs.

Inception Date 12/16/98

The first date of a fund's operations, as documented by the issuer.

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

Expense Ratio 0.16%

The net total annual fee a fund holder pays to the issuer.

Assets Under Management $13.49 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

Average Daily $ Volume $353.92 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.02%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

XLK Portfolio Data

Weighted Average Market Cap $246.54 B

Describes the average of each stock's market cap (share price x shares outstanding) scaled by its weight in the portfolio.

Price / Earnings Ratio 19.05

Weighted average ratio of prices of a fund’s stocks to trailing earnings of underlying stocks.

Price / Book Ratio 4.30

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

Distribution Yield 1.62%

The ratio of distributions paid by the fund over the past 12 months, divided by the fund’s NAV.

Next Ex-Dividend Date 12/29/14

The date on which a security's price excludes an upcoming dividend.

Number of Holdings 71

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

XLK Index Data

Index Tracked S&P Technology Select
Sector Index

This is the benchmark an ETF is desigend to track or replicate.

Index Weighting Methodology Market Cap

A set of rules that the underlying index provider follows to weight its constituent securities.

Index Selection Methodology Committee

A set of rules that the underlying index provider follows to select its constituent securities.

Segment Benchmark Thomson Reuters US Technology

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to XLK

Top Competing ETFs VGT, IYW, RYT, QTEC, PTF

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

XLK Commentary & News

19 December 2014
ETF Analytics & Data
16 November 2014
3 Things To Know About Cyber ETF 'HACK' | ETF.com
Cinthia Murphy
28 October 2014
Finding The Best Biotech ETF | ETF.com
Dave Nadig

XLK ETF.com Efficiency Insight

XLK is among the cheapest funds in the segment and is, without a doubt, the most established one—it has been trading since 1998, and hosts over $10B in assets. The fund usually tracks its index well but in the past couple years median tracking results are coming in higher than we would expect based on the fund's expense ratio. It has, however, preserved its tax efficiency by using the redemption mechanism to avoid capital gains distributions. (Insight updated 10/03/2014)


Total Return - 12/18/2014

  • 1 Month

  • 3 Months

  • YTD

  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

XLK
0.17% 3.25% 18.34% 22.14% 20.65% 15.14% 8.57%

XLK (NAV)
0.25% 3.32% 18.43% 22.23% 20.67% 15.20% 8.63%

S&P Technology Select Sector Index
0.26% 3.36% 18.64% 22.47% 20.92% 15.33% --

Thomson Reuters US Technology
0.72% 2.39% 19.35% 23.26% 21.22% 15.46% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

XLK Portfolio Management

Expense Ratio 0.16%

The net annual fee a fund holder pays to the issuer.

(12 Mo) | Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results." href="javascript:void(0)" class="term">Median Tracking Difference (12 Mo) -0.28%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

XLK Tax Exposures

Max LT/ST Capital Gains Rate 20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

Tax on Distributions Qualified dividends

IRS treatment of the majority of the fund's distributions.

Distributes K1 No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

XLK Fund Structure

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

OTC Derivative Use No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Securities Lending Active Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

ETN Counterparty N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

ETN Counterparty Risk N/A

The risk of default by the ETN counterparty.

Fund Closure Risk Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Portfolio Disclosure Daily

The frequency of an issuer's disclosure of all fund holdings.

XLK ETF.com Tradability Insight

XLK is the most liquid fund in its segment by far, with almost $250M trading on most days—equivalent to well-over 100 creation units per day. Bid/ask spreads average a tiny 3 bps, and any premiums or discounts that crop up are extinguished quickly. In short, it is very easy to get in and out of XLK, regardless of trade size or timing. For investors whose primary concern is liquidity, it's hard to beat XLK. (Insight updated 10/03/2014)

Average Spread

Premium/Discount

Volume

XLK ETF.com/ Block LiquidityAs of 12/19/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of XLK. XLK is rated a 5 out of 5.

XLK Tradability

Avg. Daily Share Volume 8,798,681

It is the daily number of shares traded, averaged over the past 45 trading days.

Average Daily $ Volume $353.92 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

Median Daily Share Volume 7,475,718

Median number of shares traded over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.02%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

($) | The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars." href="javascript:void(0)" class="term">Average Spread ($) $0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

(12 Mo) | The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period." href="javascript:void(0)" class="term">Max. Premium / Discount (12 Mo) 0.32% / -0.15%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

Impediment to Creations None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

Market Hours Overlap 100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

(Shares) | The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund." href="javascript:void(0)" class="term">Creation Unit Size (Shares) 50,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

(45 Day Average) | The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots." href="javascript:void(0)" class="term">Creation Unit/Day (45 Day Average) 149.51

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

(%) | The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit." href="javascript:void(0)" class="term">Creation Unit Cost (%) 0.02%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

Underlying Volume / Unit 0.01%

This metric serves as a way of understanding the impact of executing 1 creation unit worth of an ETF in terms of the volume of its underlying components.

Open Interest on ETF Options 171,084

The total number of net outstanding options contracts for an ETF.

ETF.com Implied Liquidity 5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

XLK ETF.com Fit Insight

XLK offers good if not great tech exposure. Its coverage is less deep than it should be, since it limits its selection pool to the S&P 500 and thus excludes smaller companies. Still, it holds positions in familiar tech names like Apple, Microsoft and Google. However, XLK's top 10 also includes telecom companies like AT&T and Verizon. These biases reduce the purity of its tech exposure, but also tame market risk, with a beta of only 0.89. (Insight updated 10/03/2014)

XLK Geographic Exposure

Countries XLK Segment Benchmark
United States 98.96% 99.44%

Singapore 0.41% 0.56%

Argentina 0.07% --

China 0.10% --

Ireland 0.03% --

Israel 0.30% --

Regions XLK Segment Benchmark
North America 98.96% 99.44%

Asia-Pacific 0.52% 0.56%

Europe 0.16% --

Latin America 0.07% --

Developed /
Emerging Split
99.70% / 0.30% 100.00% / --

XLK Performance Statistics

Beta 0.90

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

Up Beta 0.92

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Down Beta 0.92

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Downside Standard Deviation 0.14%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

Segment Benchmark Thomson Reuters US Technology

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

XLK Benchmark Comparison

XLK
71 Holdings
Segment Benchmark
244 Constituents
Shared Holdings
52 (Count)
 
76.80% (Weight)
XLKSegment Benchmark
Market Cap | The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio." href="javascript:void(0)" class="term">Weighted Average
Market Cap
$243.53 B$246.54 B

The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio.

Size Split

The breakdown of the portfolio’s holdings into each market capitalization bucket based on each firm’s weighting in the portfolio.

Large (>12.9B)83%95%
Mid (>2.7B)13%5%
Small (>600M)4%0%
Micro (<600M)0%0%
Price / Book Ratio4.284.30

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

Dividend Yield1.28%1.76%

The weighted average of the current yield on the portfolio’s holdings.

Holdings | The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper." href="javascript:void(0)" class="term">Number Of
Holdings
24471

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

ConcentrationHighHigh

The level of return contribution attributable to the average portfolio constituent.