The State Street SPDR NYSE Technology ETF (XNTK) was launched on 09/25/2000, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by State Street Investment Management, XNTK has amassed assets over $2.2 billion, 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.35% for XNTK, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.15%.
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.
This ETF has heaviest allocation in the Information Technology sector - about 80.4% of the portfolio. Telecom and Consumer Discretionary round out the top three.
When you look at individual holdings, Micron Technology Inc (MU) accounts for about 8.36% of the fund's total assets, followed by Intel Corp (INTC) and Advanced Micro Devices (AMD).
XNTK's top 10 holdings account for about 49.45% of its total assets under management.
Performance and Risk
The ETF has added about 28.69% and it's up approximately 51.12% so far this year and in the past one year (as of 08/24/2026), respectively. XNTK has traded between $240.09 and $390.65 during this last 52-week period.
The fund has a beta of 1.45 and standard deviation of 26.73% for the trailing three-year period. With about 37 holdings, it has more concentrated exposure than peers .
Alternatives
State Street 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.
State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $119.58 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $145.29 billion. XLK has an expense ratio of 0.08% and VGT changes 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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State Street SPDR NYSE Technology ETF (XNTK): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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