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Is SPDR NYSE Technology ETF (XNTK) a Strong ETF Right Now?
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Making its debut on 09/25/2000, smart beta exchange traded fund SPDR NYSE Technology ETF (XNTK - Free Report) provides investors broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by State Street Global Advisors. It has amassed assets over $527.63 million, making it one of the average sized ETFs in the Technology ETFs. XNTK, before fees and expenses, seeks to match the performance of the NYSE Technology Index.
The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for XNTK are 0.35%, which makes it one of the least expensive products in the space.
XNTK's 12-month trailing dividend yield is 0.52%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For XNTK, it has heaviest allocation in the Information Technology sector --about 64.70% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 5.51% of the fund's total assets, followed by Meta Platforms Inc Class A (META - Free Report) and Uber Technologies Inc (UBER - Free Report) .
XNTK's top 10 holdings account for about 37.82% of its total assets under management.
Performance and Risk
The ETF return is roughly 39.65% and it's up approximately 14.57% so far this year and in the past one year (as of 08/21/2023), respectively. XNTK has traded between $90.06 and $148.48 during this last 52-week period.
The ETF has a beta of 1.23 and standard deviation of 29.91% for the trailing three-year period. With about 37 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR NYSE Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which 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 $47.91 billion in assets, Vanguard Information Technology ETF has $49.85 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
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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Is SPDR NYSE Technology ETF (XNTK) a Strong ETF Right Now?
Making its debut on 09/25/2000, smart beta exchange traded fund SPDR NYSE Technology ETF (XNTK - Free Report) provides investors broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by State Street Global Advisors. It has amassed assets over $527.63 million, making it one of the average sized ETFs in the Technology ETFs. XNTK, before fees and expenses, seeks to match the performance of the NYSE Technology Index.
The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for XNTK are 0.35%, which makes it one of the least expensive products in the space.
XNTK's 12-month trailing dividend yield is 0.52%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For XNTK, it has heaviest allocation in the Information Technology sector --about 64.70% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 5.51% of the fund's total assets, followed by Meta Platforms Inc Class A (META - Free Report) and Uber Technologies Inc (UBER - Free Report) .
XNTK's top 10 holdings account for about 37.82% of its total assets under management.
Performance and Risk
The ETF return is roughly 39.65% and it's up approximately 14.57% so far this year and in the past one year (as of 08/21/2023), respectively. XNTK has traded between $90.06 and $148.48 during this last 52-week period.
The ETF has a beta of 1.23 and standard deviation of 29.91% for the trailing three-year period. With about 37 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR NYSE Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which 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 $47.91 billion in assets, Vanguard Information Technology ETF has $49.85 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
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.