Is Investing in the State Street SPDR NYSE Technology ETF (X

Overview of the SPDR NYSE Technology ETF (XNTK)

If you’re seeking comprehensive access to the broad technology sector within the equity market, the SPDR NYSE Technology ETF (XNTK) from State Street is worth considering. This passively managed exchange-traded fund, launched on September 25, 2000, aims to track the performance of the technology sector as a whole.

Why Choose Passively Managed ETFs?

Passively managed ETFs have gained traction among both institutional and individual investors due to their cost-effectiveness, transparency, flexibility, and tax advantages. These features make them appealing choices for those with a long-term investment horizon.

Sector ETFs: Diversification and Reduced Risk

Sector-based ETFs offer investors a way to access a wide range of companies within a specific industry, helping to spread risk and achieve diversification. The Technology - Broad sector is one of 16 major sectors classified by Zacks, currently ranked 7th, placing it in the top 44% of all sectors.

Key Facts About XNTK

State Street Investment Management sponsors XNTK, which has accumulated over $1.55 billion in assets, making it one of the larger funds in its category. The ETF seeks to replicate the performance of the NYSE Technology Index, before accounting for fees and expenses.

The NYSE Technology Index consists of 35 prominent U.S.-listed technology companies.

Cost Structure

When selecting an ETF, cost is a crucial consideration. Lower-cost funds can outperform more expensive ones when other factors are equal. XNTK stands out with an annual expense ratio of just 0.35%, positioning it among the most affordable options in its segment.

The ETF also offers a 12-month trailing dividend yield of 0.24%.

Portfolio Composition and Major Holdings

While ETFs inherently provide diversification, it’s important to review the underlying holdings. Most ETFs, including XNTK, are transparent and disclose their portfolios daily.

Approximately 76.4% of XNTK’s assets are allocated to the Information Technology sector, with Consumer Discretionary and Telecommunications making up the next largest portions. The fund’s largest individual holding is Micron Technology Inc (MU), representing about 4.82% of assets, followed by Lam Research Corp (LRCX) and Intel Corp (INTC).

The top ten holdings collectively account for roughly 37.22% of the fund’s total assets.

Performance and Volatility

Year-to-date, XNTK has declined by about 1.97%, but over the past year (as of 02/26/2026), it has gained approximately 30.36%. During the last 52 weeks, the ETF’s price has ranged between $164.46 and $294.46.

With a beta of 1.31 and a three-year standard deviation of 24.41%, XNTK exhibits higher volatility and a more concentrated portfolio compared to some peers, holding around 37 stocks.

Other ETF Alternatives

XNTK holds a Zacks ETF Rank of 2 (Buy), reflecting its favorable outlook based on factors such as expected returns, expenses, and momentum. Investors interested in technology ETFs may also consider other options in the market.

• State Street Technology Select Sector SPDR ETF (XLK): Tracks the Technology Select Sector Index, with $90.27 billion in assets and an expense ratio of 0.08%.
• Vanguard Information Technology ETF (VGT): Follows the MSCI US Investable Market Information Technology 25/50 Index, managing $113.18 billion in assets and charging a 0.09% expense ratio.

Conclusion

For more details on XNTK and other ETFs, you can explore products that align with your investment goals and stay informed about the latest trends in ETF investing by visiting the Zacks ETF Center.

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This article was originally published by Zacks Investment Research.

Zacks Investment Research