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Launched on 09/25/2000, the SPDR NYSE Technology ETF (XNTK) is a smart beta exchange traded fund offering 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.

A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.

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.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is managed by State Street Global Advisors, and has been able to amass over $939.44 million, which makes it one of the larger ETFs in the Technology ETFs. XNTK 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

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

With one of the least expensive products in the space, this ETF has annual operating expenses of 0.35%.

The fund has a 12-month trailing dividend yield of 0.39%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

For XNTK, it has heaviest allocation in the Information Technology sector --about 71.70% of the portfolio --while Telecom and Consumer Discretionary round out the top three.

Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 3.12% of the fund's total assets, followed by Applovin Corp Class A (APP) and Nvidia Corp (NVDA).

XNTK's top 10 holdings account for about 30.19% of its total assets under management.

Performance and Risk

So far this year, XNTK has added roughly 7.39%, and it's up approximately 27.67% in the last one year (as of 01/23/2025). During this past 52-week period, the fund has traded between $167.48 and $216.73.

The ETF has a beta of 1.22 and standard deviation of 28.37% 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) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $75.74 billion in assets, Vanguard Information Technology ETF has $88.06 billion. XLK has an expense ratio of 0.09% 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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SPDR NYSE Technology ETF (XNTK): ETF Research Reports

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

Technology Select Sector SPDR ETF (XLK): ETF Research Reports

AppLovin Corporation (APP) : Free Stock Analysis Report

Vanguard Information Technology ETF (VGT): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.