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XLK - ETF AI Analysis
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Technology Select Sector SPDR Fund (XLK)
Rating:76Outperform
Price Target:―
Positive Factors
Large, Established Fund
The ETF manages a very large pool of assets, which can support liquidity and tighter trading spreads for investors.
Low Expense Ratio
The fund charges a relatively low fee, so less of your potential return is lost to ongoing costs.
Exposure to Leading Tech Names
The portfolio is built around major technology companies, including several with strong recent gains that can help support overall performance.
Negative Factors
Recent Weak Performance
The ETF has shown weak returns over the past month, three months, and year to date, which may concern investors looking for near-term momentum.
High Concentration in a Few Stocks
A small number of large holdings like Nvidia, Apple, and Microsoft make up a big share of the fund, increasing the impact if any of them struggle.
Narrow Sector and Geographic Focus
Almost all of the fund is invested in U.S. technology and related companies, which limits diversification across other sectors and regions.
XLK vs. SPDR S&P 500 ETF (SPY)
AUM88.89B
RegionNorth America
Expense Ratio0.08%
Beta1.48
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield0.56%
Asset ClassEquity
Index TrackedS&P Technology Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume19,015,980
30 Day Avg. Volume16,370,362
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
179.87Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering72
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XLK Summary
XLK is an ETF that follows the S&P Technology Select Sector Index, giving you a simple way to invest in major U.S. technology companies in one fund. It mainly holds big, well-known names like Apple, Microsoft, and Nvidia, along with other leading chip, software, and hardware firms. Someone might invest in XLK if they believe the tech sector will keep growing and want an easy, diversified way to benefit from that trend. A key risk is that it is heavily concentrated in technology stocks, so its price can swing a lot when the tech sector rises or falls.
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
XLK is very much a U.S. tech story, with performance hinging on a handful of heavyweight names. Nvidia is still doing the heavy lifting, rising on the back of AI enthusiasm, while Micron, Lam Research, and Applied Materials add extra fuel from the semiconductor boom. Apple has been a bit mixed, perking up recently but still feeling the afterburn of earlier weakness, and Microsoft looks like it’s catching its breath after a strong run. With so much riding on a few mega-cap chip and software leaders, the fund is highly concentrated in one powerful—but volatile—theme.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 15.90% | $13.89B | $4.69T | 52.29% | 76 Outperform | |
| Apple | 13.43% | $11.74B | $4.00T | 10.16% | 79 Outperform | |
| Microsoft | 9.76% | $8.53B | $2.89T | -2.24% | 79 Outperform | |
| Broadcom | 5.33% | $4.66B | $1.54T | 60.70% | 76 Outperform | |
| Micron | 4.21% | $3.68B | $470.47B | 348.41% | 79 Outperform | |
| Advanced Micro Devices | 2.85% | $2.49B | $348.65B | 105.69% | 73 Outperform | |
| Cisco Systems | 2.73% | $2.39B | $308.64B | 21.58% | 77 Outperform | |
| Lam Research | 2.71% | $2.37B | $305.01B | 204.21% | 77 Outperform | |
| Palantir Technologies | 2.66% | $2.32B | $308.14B | 46.68% | 74 Outperform | |
| Applied Materials | 2.65% | $2.32B | $299.93B | 128.30% | 77 Outperform |
XLK Technical Analysis
Negative
―
Price Trends
143.62
Negative
143.92
Negative
135.44
Positive
Market Momentum
-1.25
Positive
46.18
Neutral
37.32
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLK, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 141.91, equal to the 50-day MA of 143.62, and equal to the 200-day MA of 135.44, indicating a neutral trend. The MACD of -1.25 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 37.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XLK.
XLK Peer Comparison
Comparison Results
Performance Comparison
XLK
Technology Select Sector SPDR Fund
140.32
25.54
22.25%
VGT
Vanguard Information Technology ETF
―
―
―
XLF
Financial Select Sector SPDR Fund
―
―
―
SOXX
iShares Semiconductor ETF
―
―
―
IYW
iShares U.S. Technology 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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