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Is SPDR NYSE Technology ETF (XNTK) a Strong ETF Right Now?
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A smart beta exchange traded fund, the SPDR NYSE Technology ETF (XNTK - Free Report) debuted on 09/25/2000, and offers broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by State Street Global Advisors. It has amassed assets over $876.43 million, making it one of the larger ETFs in the Technology ETFs. This particular fund 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.
Cost & Other Expenses
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 XNTK are 0.35%, which makes it one of the least expensive products in the space.
XNTK's 12-month trailing dividend yield is 0.38%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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 69.40% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
When you look at individual holdings, Alibaba Group Holding Sp Adr (BABA - Free Report) accounts for about 4.85% of the fund's total assets, followed by Uber Technologies Inc (UBER - Free Report) and Pdd Holdings Inc (PDD - Free Report) .
XNTK's top 10 holdings account for about 34.25% of its total assets under management.
Performance and Risk
Year-to-date, the SPDR NYSE Technology ETF has lost about -0.09% so far, and is up roughly 10.75% over the last 12 months (as of 03/27/2025). XNTK has traded between $167.48 and $228.87 in this past 52-week period.
The ETF has a beta of 1.27 and standard deviation of 27.34% 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 $66.10 billion in assets, Vanguard Information Technology ETF has $78.23 billion. XLK has an expense ratio of 0.08% and VGT charges 0.09%.
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?
A smart beta exchange traded fund, the SPDR NYSE Technology ETF (XNTK - Free Report) debuted on 09/25/2000, and offers broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by State Street Global Advisors. It has amassed assets over $876.43 million, making it one of the larger ETFs in the Technology ETFs. This particular fund 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.
Cost & Other Expenses
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 XNTK are 0.35%, which makes it one of the least expensive products in the space.
XNTK's 12-month trailing dividend yield is 0.38%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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 69.40% of the portfolio --while Consumer Discretionary and Telecom round out the top three.
When you look at individual holdings, Alibaba Group Holding Sp Adr (BABA - Free Report) accounts for about 4.85% of the fund's total assets, followed by Uber Technologies Inc (UBER - Free Report) and Pdd Holdings Inc (PDD - Free Report) .
XNTK's top 10 holdings account for about 34.25% of its total assets under management.
Performance and Risk
Year-to-date, the SPDR NYSE Technology ETF has lost about -0.09% so far, and is up roughly 10.75% over the last 12 months (as of 03/27/2025). XNTK has traded between $167.48 and $228.87 in this past 52-week period.
The ETF has a beta of 1.27 and standard deviation of 27.34% 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 $66.10 billion in assets, Vanguard Information Technology ETF has $78.23 billion. XLK has an expense ratio of 0.08% and VGT charges 0.09%.
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.