XLK: Tech Sector's Performance And Outlook

Alex Galanis
710 Followers

Summary

  • XLK tracks the information technology sector and has delivered impressive returns over its 20-year history.
  • The fund carries a lot of concentration risk with its top 2 holdings (Apple and Microsoft) accounting for 45.7% of total holdings.
  • XLK charges a 0.10% expense ratio and offers a 0.70% distribution yield.

Businessmen holding a smartphone with icons of ETF Exchange traded fund stock market trading investment financial concept.

Khaosai Wongnatthakan/iStock via Getty Images

Introduction

The Technology sector, tracked by SPDR's NYSEARCA:XLK ETF, has recorded outstanding performance especially the past few years. As the Covid-19 pandemic accelerated the digitalization of the economy, Technology stocks have led the way in a strong market

This article was written by

710 Followers
Financial Analyst, interested in U.S equities, examining Growth, Dividend Growth and Value Investment opportunities, as well as ETFs.  Accounting and Finance Graduate. CFA level ΙI candidate.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About XLK ETF

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Compare to Peers

More on XLK

Related Stocks

SymbolLast Price% Chg
XLK
--