XLK - ETF AI Analysis

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Technology Select Sector SPDR Fund (XLK)

Rating:76Outperform

Price Target:―

The ETF XLK, which focuses on the technology sector, has a strong overall rating driven by its top holdings in leading companies like Microsoft and Apple. Microsoft contributes positively with its robust growth in cloud and AI segments, supported by strong financial performance and strategic investments. Apple also strengthens the fund with its leadership in consumer electronics, profitability, and growth potential in services and emerging markets. However, Oracle's weaker performance, due to bearish technical trends and high leverage, slightly weighs down the overall rating. Investors should note the fund's concentration in the technology sector, which could pose risks during periods of sector volatility.

Positive Factors

Strong Top Holdings

Several key holdings, like Nvidia, Broadcom, and Palantir, have delivered strong year-to-date performance, driving the fund’s growth.

Low Expense Ratio

The ETF charges a very low expense ratio, making it cost-effective compared to many other funds.

Large Asset Base

With significant assets under management, the fund benefits from stability and investor confidence.

Negative Factors

High Concentration in Technology

The ETF is heavily weighted in the technology sector, making it vulnerable to downturns in this industry.

Limited Geographic Diversification

The fund is almost entirely focused on U.S. companies, offering little exposure to international markets.

Underperforming Holding

Salesforce has shown negative year-to-date performance, which could drag on overall returns.

XLK vs. SPDR S&P 500 ETF (SPY)

AUM92.84B

RegionNorth America

Expense Ratio0.08%

Beta1.51

IssuerSPDR

Inception DateDec 16, 1998

Dividend Yield0.53%

Asset ClassEquity

Index TrackedS&P Technology Select Sector

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume8,222,878

30 Day Avg. Volume17,165,397

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

178.71

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering71

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XLK Summary

The Technology Select Sector SPDR Fund (XLK) is an ETF that focuses on the U.S. Information Technology sector, tracking the S&P Technology Select Sector Index. It includes major tech companies like Apple and Microsoft, as well as innovators like NVIDIA. This ETF is a great option for investors who want to tap into the growth potential of the tech industry, which drives innovation across the globe. However, since it is heavily focused on technology, its performance can be significantly affected by changes in the tech market or broader economic trends.

How much will it cost me?The expense ratio for XLK is 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because XLK is passively managed, tracking the performance of the Technology Select Sector Index rather than relying on active stock picking.

What would affect this ETF?The XLK ETF could benefit from continued innovation in the technology sector, including advancements in artificial intelligence, cloud computing, and digital communication, which are key areas for its top holdings like Nvidia, Microsoft, and Apple. However, rising interest rates or regulatory scrutiny on major tech companies could negatively impact growth and profitability, especially given its heavy U.S. exposure and reliance on a few dominant players. Economic conditions, such as a slowdown in consumer or business spending, may also affect demand for technology products and services.

XLK Top 10 Holdings

The XLK ETF is heavily anchored by tech giants like Apple, Microsoft, and Nvidia, which together make up a significant portion of its holdings. Apple has been steady, buoyed by its focus on services and emerging markets, while Nvidia’s recent performance has been mixed as it navigates inventory challenges despite strong AI-driven growth. Microsoft is showing signs of lagging, with cloud and AI segments providing long-term promise but struggling in the short term. Meanwhile, smaller names like Palantir and Micron are rising stars, benefiting from their strategic focus on AI solutions. Overall, the fund leans heavily into U.S. technology, with a clear emphasis on innovation and AI, though some big names are losing steam.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	15.00%	$13.95B	$4.57T	33.61%	76 Outperform
AAPL	Apple	12.95%	$12.05B	$3.95T	8.32%	79 Outperform
MSFT	Microsoft	11.53%	$10.73B	$3.51T	13.29%	79 Outperform
AVGO	Broadcom	5.32%	$4.95B	$1.63T	50.35%	76 Outperform
PLTR	Palantir Technologies	3.40%	$3.17B	$414.81B	156.76%	74 Outperform
AMD	Advanced Micro Devices	3.08%	$2.87B	$359.93B	68.34%	73 Outperform
MU	Micron	3.00%	$2.79B	$351.33B	236.99%	79 Outperform
ORCL	Oracle	2.77%	$2.58B	$553.34B	19.58%	66 Neutral
CSCO	Cisco Systems	2.55%	$2.37B	$298.62B	27.66%	77 Outperform
IBM	International Business Machines	2.36%	$2.20B	$275.72B	35.06%	79 Outperform

XLK Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

144.79

Positive

100DMA

140.96

Positive

200DMA

128.55

Positive

Market Momentum

MACD

0.43

Negative

RSI

56.74

Neutral

STOCH

54.66

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLK, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 144.95, equal to the 50-day MA of 144.79, and equal to the 200-day MA of 128.55, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 54.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLK.

XLK Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XLK	―	―	$92.84B	0.08%	―
VGT	―	―	$113.15B	0.09%	―
XLF	―	―	$53.14B	0.08%	―
IYW	―	―	$21.04B	0.38%	―
SOXX	―	―	$18.21B	0.34%	―
FTEC	―	―	$16.73B	0.08%	―

Performance Comparison

XLK

Technology Select Sector SPDR Fund

146.65

32.97

29.00%

VGT

Vanguard Information Technology ETF

―

XLF

Financial Select Sector SPDR Fund

―

IYW

iShares U.S. Technology ETF

―

SOXX

iShares Semiconductor ETF

―

FTEC

Fidelity MSCI Information Technology Index ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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