Technology ETF XLK Offers Investors Big Industry Names

–News Direct–

Technology touches so much in the world, from businesses and industries of nearly every kind, to personal lives. Every facet of the economy is connected to and reliant on technology. And with the increasing prevalence and adoption of Artificial Intelligence (A.I.) that trend will only continue.

Thats why technology could be a critical component to any diversified portfolio. Every advisor and investor should evaluate the sector in their investment plans.

Google, Amazon, Apple, Meta (Facebook), Nvidia, and others have gone from start-ups 20 years ago to corporate giants of the world, with business models and products that are difficult to compete with, much less beat.

But deciding which tech stock to buy comes with a potential solution. The Technology Select Sector SPDR Fund (XLK) offers easy and affordable access to this crucial piece of the economy in an index fund offering exposure to 65* of the biggest tech companies in the U.S.

Top Holdings

The Technology Select Sector SPDR funds top two holdings, Apple and Microsoft, make up more than 45% of the ETFs holdings over 20% each.

Along with chip-maker Nvidia, the third largest holding at 5.04%, XLK offers a diverse technology fund that represents the economy in many ways.

XLK is actively traded on the NYSE Arca and offers an investor-friendly expense ratio of 0.10%**.

With more than $50 billion in assets under management, XLK can be the go-to choice for technology exposure in a well-diversified portfolio.

The funds focus on large-cap companies is a key component. The constituents of XLK are not start-ups, but rather well-established technology businesses.

Why Tech?

How does a tech ETF like XLK fit into a portfolio? The short answer is, significantly in the long term. No industry fuels the economy more than technology. Every facet of life today has technology behind it.

XLK provides investment results that, before expenses, correspond generally to the price and yield performance of the Technology Select Sector Index.

Whether employed strategically or tactically, XLK offers a more focused approach compared to traditional style-based investing.

The ETF offers exposure to technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments, and components. This sector is well covered with broad exposure via XLK.

DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.

About the Company:

Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.

* Holdings, Weightings & Assets as of 7/31/23 subject to change

** Ordinary brokerage fees apply

DISCLOSURES

The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.

One may not invest directly in an index.

Transparent ETFs provide daily disclosure of portfolio holdings and weightings

All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.

ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.

Media Contact:

Company: Select Sector SPDRs

Contact: Dan Dolan*

Address: 1290 Broadway, Suite 1000, Denver, CO 80203

Country: United States

Email: dan.dolan@sectorspdrs.com

Website: https://www.sectorspdrs.com/

*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.

SEL006808 EXP 10/31/23

Contact Details

Dan Dolan

dan.dolan@sectorspdrs.com

Company Website

https://www.sectorspdrs.com/

View source version on newsdirect.com: https://newsdirect.com/news/technology-etf-xlk-offers-investors-big-industry-names-204719867

Select Sector SPDR

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