Should You Invest in the State Street SPDR NYSE Technology ETF (XNTK)?

Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the State Street SPDR NYSE Technology ETF (XNTK), a passively managed exchange traded fund launched on September 25, 2000.An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.Index DetailsThe fund is sponsored by State Street Investment Management. It has amassed assets over $1.5 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. 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.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 0.24%.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 72.3% of the portfolio. Consumer Discretionary and Telecom round out the top three.Looking at individual holdings, Palantir Technologies Inc A (PLTR) accounts for about 5.09% of total assets, followed by Micron Technology Inc (MU) and Applovin Corp Class A (APP).The top 10 holdings account for about 41.49% of total assets under management.Performance and RiskYear-to-date, the State Street SPDR NYSE Technology ETF return is roughly 38.67% so far, and it's up approximately 37.21% over the last 12 months (as of 12/22/2025). XNTK has traded between $164.461 and $294.46 in this past 52-week period.The ETF has a beta of 1.31 and standard deviation of 24.77% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers.AlternativesState Street SPDR NYSE Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XNTK is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that 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 $93.47 billion in assets, Vanguard Information Technology ETF has $112.27 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.Bottom 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