Is State Street SPDR NYSE Technology ETF (XNTK) a Strong ETF Right Now?

Designed to provide broad exposure to the Technology ETFs category of the market, the State Street SPDR NYSE Technology ETF (XNTK) is a smart beta exchange traded fund launched on 09/25/2000.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.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexBecause the fund has amassed over $1.59 billion, this makes it one of the larger ETFs in the Technology ETFs. XNTK is managed by State Street Investment Management. Before fees and expenses, this particular fund seeks to match the performance of the NYSE Technology Index.The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies.Cost & Other ExpensesCost 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.Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.XNTK's 12-month trailing dividend yield is 0.23%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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 75.3% of the portfolio. Consumer Discretionary and Telecom round out the top three.When you look at individual holdings, Micron Technology Inc (MU) accounts for about 3.81% of the fund's total assets, followed by Lam Research Corp (LRCX) and Asml Holding Nv Ny Reg Shs (ASML).The top 10 holdings account for about 31.55% of total assets under management.Performance and RiskSo far this year, XNTK return is roughly 1.37%, and is up roughly 32.19% in the last one year (as of 02/02/2026). During this past 52-week period, the fund has traded between $164.46 and $294.46.The fund has a beta of 1.31 and standard deviation of 24.41% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers .AlternativesState 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 ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $92.09 billion in assets, Vanguard Information Technology ETF has $111.71 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 ETFsBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street SPDR NYSE Technology ETF (XNTK): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks