SPDR Technology (XLK) is the largest of the 11 SPDR sectors, comprising over 27% of the S&P 500.1 XLK companies broadly serve tech and electronic needs while fueling innovative growth. The fund is primarily tech giants Apple (AAPL) and Microsoft (MSFT), each with over 20% of the total ETF. The ETF next includes NVIDIA (NVDA) and Visa (V), each with 4-6% representation.
Based on sector data, XLK is technologically innovative with reliable demand, but its volatility is difficult to predict. Investing strongly in R&D, XLK firms develop phones, smartwatches, and different computer gadgets. The sector is sensitive and responds in part to breakthroughs in innovation, artificial intelligence, telecommunication, and the computer chip supply chain.
The diverse fund includes software (32%); technology hardware, storage, and peripherals (24%); semiconductors and semiconductor equipment (22%); information technology services (16%); communications equipment (3%); and electronic equipment instruments and components (3%).2 Companies not in XLK that utilize high-tech in their regular business operations position themselves to be competitive in the marketplace. This creates demand in XLK industries from firms.
First State Investment Advisors maintains a significant position in Microsoft (MSFT) and the XLK ETF for its client portfolios. As of February 24, 2023, XLK’s 52-week high is $163.65, the 52-week low is $112.97, and the current price is $135.96. Our team of Tulsa wealth advisors is adept at navigating the innovative side of the stock market and fits every client’s portfolio to individual goals. To schedule a free consultation, contact us today at (918) 492-1361.
Sources
1Select Sector SPDRs Technology XLK (Accessed Feb 17, 2023)
2State Street Global Advisors XLK The Technology Select Sector SPDR® Fund (Accessed Feb 17, 2023)
This overview is for informational purposes only and is not a recommendation. It should not be the sole deciding factor in making an investment. Investing is a risk and, as with all risks, a positive return is not guaranteed. Past performance does not indicate future results.