XLK: Technology Select Sector SPDR Fund

XLK is the Technology Select Sector SPDR Fund, the S&P 500 technology sector in one ticker. It holds approximately 70 stocks (the technology classification within the S&P 500), heavily concentrated in Microsoft, NVIDIA, and Apple at the top. Expense ratio of 0.09%.

XLK, listed on NYSE Arca. The official name is Technology Select Sector SPDR Fund, issued by State Street Global Advisors (the SPDR brand). It tracks the Technology Select Sector Index, which is the S&P 500's GICS Information Technology sector.

Approximately 70 stocks from the S&P 500's tech sector. Top 10 (Microsoft ~18.5%, NVIDIA ~16.5%, Apple ~13.5%, Broadcom ~4.3%, Oracle ~2.7%, Salesforce ~1.9%, Adobe ~1.7%, AMD ~1.6%, Accenture ~1.5%, Cisco ~1.5%) account for ~65% of the fund. Extremely top-heavy.

Both tech sector ETFs at 0.09%. VGT holds ~300 stocks (broader universe including mid and small caps); XLK holds ~70 (S&P 500 only). XLK is more top-heavy because the smaller universe lets the trillion-dollar names dominate further. For maximum tech-mega-cap concentration, XLK. For broader tech exposure, VGT. Returns have been close; XLK has slightly higher volatility from concentration.

0.09% per year. On a $10,000 investment, that's $9/year in fees. Identical to VGT and among the cheapest sector-specific ETFs. SPDR sector funds (XLK, XLF, XLE, etc.) all charge 0.09%.

Approximately 0.6% as of early 2026, paid quarterly. Tech sector dividend yields are low because the largest names have modest yields and most growth tech pays no dividend. Dividend payers concentrated in Apple, Microsoft, Oracle, Cisco, Texas Instruments.

No, same as VGT. XLK follows GICS sector classification, which places Amazon in Consumer Discretionary, Alphabet in Communication Services, and Meta in Communication Services. XLK holds only stocks classified as Information Technology. The exclusion is a meaningful gap if you want broad mega-cap tech.

XLK trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, or any other. Fractional shares supported at most modern brokers. XLK is among the most-traded sector ETFs with deep liquidity.

Approximately $70 billion as of early 2026. Smaller than VGT (~$95 billion) because more passive flows have favored Vanguard's lower-fee broader tech ETF. XLK has retained share for its concentration and deeper options market.

XLK gives you the most concentrated exposure to Microsoft, NVIDIA, and Apple of any broad tech ETF (~50% of the fund in those three names combined). It's a direct AI infrastructure expression through the largest tech franchises. Walnut isn't an investment adviser; whether XLK fits depends on whether you want concentration in the AI mega-caps versus broader semi exposure (SMH/SOXX) or broader tech (VGT).

December 1998. XLK is one of the original SPDR Select Sector funds, launched as part of State Street's effort to give investors single-ticker sector exposure. The SPDR Select Sector lineup has been the standard for sector ETF investing for over 25 years.

Yes, at brokers that support fractional ETF purchases: Robinhood, Fidelity, Schwab, Public, M1, and several others. Fractional purchases let you fine-tune position size on XLK without committing to a full share.

Yes, quarterly. Trailing yield is approximately 0.6% annually. Distributions aggregated from the underlying constituents and paid through to XLK holders. Dividend reinvestment (DRIP) available at most brokers.

QQQ is the Nasdaq-100, ~100 stocks across tech and consumer-facing growth (includes Amazon, Tesla, Costco that XLK excludes). XLK is S&P 500 tech only, more concentrated in pure-tech mega-caps. Returns over multi-year windows have been close; XLK has slightly higher tech purity, QQQ has broader growth tilt.