Technology Select Sector SPDR Fund
Issued by SPDR / State Street Global Advisors
What XLK Is
The original large-cap technology sector ETF
XLK is the world's largest technology sector ETF with over $120 billion in assets under management. It tracks all technology companies within the S&P 500, making it a highly liquid, ultra-low-cost way to own the best-known large-cap U.S. tech names. As one of the original sector SPDRs launched in 1998, it has one of the longest track records in the ETF universe and is widely used as a core portfolio holding and as a trading vehicle for professional investors.
What It Tracks
S&P Technology Select Sector Index — all technology companies within the S&P 500. Includes software, hardware, semiconductors, IT services, and technology hardware. Only includes companies already in the S&P 500 (profitable, large-cap U.S. companies), which means no international names and no small/mid-cap tech.
Why Own XLK
XLK is the lowest-friction way to own U.S. large-cap technology. At 0.08% expense ratio and $120B+ AUM, trading costs are minimal, bid-ask spreads are extremely tight, and the fund has survived and outperformed through multiple market cycles. For long-term investors who believe in U.S. tech leadership, XLK is a set-and-forget core holding.
The Case For and Against
Strengths
- Ultra-low 0.08% expense ratio — among the cheapest ETFs of any kind
- $120B+ AUM means exceptional liquidity — tight spreads and easy to trade in size
- 28-year track record through multiple tech cycles
- S&P 500 inclusion screen means holdings are all profitable, large-cap companies
Trade-offs
- Heavily concentrated: Apple + Microsoft alone account for ~40% of the fund
- S&P 500 only — no TSMC, ASML, Samsung or other international tech giants
- Excludes mid-cap and small-cap tech — misses fast-growing smaller names
- META and GOOGL are in Communication Services, not XLK — so it doesn't include them
Who It Suits
Core long-term portfolio holders who want broad, low-cost U.S. large-cap tech exposure with minimal management costs and maximum liquidity.
Performance
| Period | Return | Annualised | Window started | Price then |
|---|---|---|---|---|
| 1 Month | -18.2% | — | 2026-10-07 | $201.39 |
| 3 Months | -12.4% | — | 2026-08-07 | $187.97 |
| 6 Months | -6.1% | — | 2026-05-08 | $175.52 |
| YTD | +14.4% | — | 2025-12-31 | $143.97 |
| 1 Year | +13.9% | — | 2025-11-06 | $144.58 |
| 2 Years | +41.2% | +18.8% | 2024-11-06 | $116.68 |
| 5 Years | +97.2% | +14.5% | 2021-11-05 | $83.54 |
| Since Inception | +928.1% | +8.7% | 1998-12-22 | $16.02 |
Price returns only, computed from 7012 daily closes — before commissions, spreads and tax, and excluding any distributions, so a fund that pays income has earned more than these figures show. Annualised figures appear only for windows longer than about 13 months. This fund has a share split on record; figures are computed from unadjusted closes and should be re-verified. These are not the fund's official NAV-based returns — see the issuer's fact sheet for those.
Trading & Market Data
XLK is trading inside its 52-week range. A high reading is not a sell signal and a low one is not a bargain — it only says where the last year's prices sit relative to today.
What the Expense Ratio Costs
XLK charges 0.09% a year. Deducted daily from net asset value, never billed separately, so it is easy to miss. On a flat $10,000 position — holding the price steady to isolate the fee from the returns — it compounds to:
An illustration, not a projection: in reality the fee is charged against a balance that moves, so the dollar cost rises with a fund that grows and falls with one that shrinks. It also excludes bid-ask spread, brokerage commission and — for funds structured as commodity pools or partnerships — any additional filing complexity.
Asset Allocation
Top Holdings (10 shown)
Holdings data sourced from Yahoo Finance. Weights change over time — verify current holdings on the issuer's official fund page.
Sector Weights
Related Technology ETFs
XLK — Common Questions
Why doesn't XLK include Google or Meta?
GOOGL (Alphabet) and META (Meta Platforms) are classified in the Communication Services sector in the S&P 500's GICS taxonomy, not the Technology sector. XLK tracks only the Technology sector, so it doesn't include them. FTEC uses the MSCI IT classification which also excludes them for the same reason. QQQ does include them, since it tracks Nasdaq by market cap rather than sector classification.
Is XLK or QQQ better for tech exposure?
They solve different problems. XLK is a pure tech sector ETF (0.08% fee) with 76 holdings. QQQ tracks the 100 largest non-financial Nasdaq companies (0.20% fee), giving you 100+ holdings including GOOGL, META, AMZN, and TSLA alongside tech names. If you want the broadest large-cap growth exposure, QQQ is better. If you want pure tech sector tracking, XLK is cheaper and more focused.
What does XLK actually track?
Technology Select Sector SPDR Fund is a technology ETF from SPDR / State Street Global Advisors. Its largest disclosed position is Apple Inc at 15.31% of the fund, and its heaviest sector exposure is Technology at 100.00%.
How much does XLK charge?
0.09% per year, deducted from net asset value rather than billed to you. On $10,000 held for ten years with a flat price that is about $90.
How has XLK performed?
Over the past year the price rose 13.9%, and since 1998-12-22 it is +928.1%. Its worst peak-to-trough fall on record is -82.0%, between Mar 27, 2000 and Oct 9, 2002. Those are price returns as of 2026-11-06 and exclude distributions.
How large is XLK?
About $118.7B in assets, trading roughly 8.40M shares a day over the last three months. Size and volume matter mainly for how cheaply you can get in and out: a thinly traded fund costs more in spread than its expense ratio suggests.
Is XLK right for me?
That depends on what the rest of your portfolio already holds, not on this fund's recent returns. Nothing on this page is a recommendation — check the issuer's prospectus and, if it matters to your taxes or retirement, a licensed adviser.
Disclaimer: This page is for informational and educational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. ETF data is sourced from Yahoo Finance and public fund documents and may change — always verify current data on the issuer's official website before investing. All investments involve risk.
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