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XLK - ETF AI Analysis
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Technology Select Sector SPDR Fund (XLK)
Rating:77Outperform
Price Target:
$327.00
Positive Factors
Strong Top Holdings
Several key holdings, like Nvidia, Broadcom, and Palantir, have delivered strong year-to-date performance, driving the fund’s growth.
Low Expense Ratio
The ETF charges a very low expense ratio, making it cost-effective compared to many other funds.
Large Asset Base
With significant assets under management, the fund benefits from stability and investor confidence.
Negative Factors
High Concentration in Technology
The ETF is heavily weighted in the technology sector, making it vulnerable to downturns in this industry.
Limited Geographic Diversification
The fund is almost entirely focused on U.S. companies, offering little exposure to international markets.
Underperforming Holding
Salesforce has shown negative year-to-date performance, which could drag on overall returns.
XLK vs. SPDR S&P 500 ETF (SPY)
AUM97.41B
RegionNorth America
Expense Ratio0.08%
Beta1.46
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield0.5%
Asset ClassEquity
Index TrackedS&P Technology Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume8,683,078
30 Day Avg. Volume8,668,427
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
328.72Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering70
XLK Summary
The Technology Select Sector SPDR Fund (XLK) is an ETF that focuses on the U.S. Information Technology sector, tracking the S&P Technology Select Sector Index. It includes major tech companies like Apple and Microsoft, as well as innovators like NVIDIA. This ETF is a great option for investors who want to tap into the growth potential of the tech industry, which drives innovation across the globe. However, since it is heavily focused on technology, its performance can be significantly affected by changes in the tech market or broader economic trends.
How much will it cost me?The expense ratio for XLK is 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because XLK is passively managed, tracking the performance of the Technology Select Sector Index rather than relying on active stock picking.
What would affect this ETF?The XLK ETF could benefit from continued innovation in the technology sector, including advancements in artificial intelligence, cloud computing, and digital communication, which are key areas for its top holdings like Nvidia, Microsoft, and Apple. However, rising interest rates or regulatory scrutiny on major tech companies could negatively impact growth and profitability, especially given its heavy U.S. exposure and reliance on a few dominant players. Economic conditions, such as a slowdown in consumer or business spending, may also affect demand for technology products and services.
XLK Top 10 Holdings
The XLK ETF is heavily concentrated in U.S. technology giants, with Nvidia, Microsoft, and Apple leading the charge. Nvidia’s meteoric rise, fueled by its dominance in AI infrastructure, has been a key driver of the fund’s performance, while Microsoft’s steady growth in cloud and AI services adds stability. Apple, though profitable, has shown mixed momentum recently, potentially holding back gains. Meanwhile, Salesforce has been a drag on the fund, struggling with valuation concerns and short-term headwinds. Overall, the ETF’s focus on tech innovation keeps it riding the wave of sector growth, but a few laggards temper the excitement.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 14.96% | $14.50B | $5.03T | 48.59% | 85 Outperform | |
| Microsoft | 12.29% | $11.91B | $4.03T | 25.20% | 82 Outperform | |
| Apple | 12.18% | $11.80B | $4.00T | 17.21% | 78 Outperform | |
| Broadcom | 5.35% | $5.19B | $1.82T | 118.51% | 76 Outperform | |
| Palantir Technologies | 3.67% | $3.56B | $471.65B | 355.05% | 76 Outperform | |
| Advanced Micro Devices | 3.56% | $3.46B | $428.97B | 77.88% | 77 Outperform | |
| Oracle | 3.43% | $3.33B | $784.82B | 57.71% | 66 Neutral | |
| International Business Machines | 2.48% | $2.40B | $288.09B | 50.42% | 77 Outperform | |
| Cisco Systems | 2.45% | $2.37B | $281.98B | 28.31% | 79 Outperform | |
| Micron | 2.11% | $2.05B | $254.38B | 117.74% | 78 Outperform |
XLK Technical Analysis
Positive
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Price Trends
278.25
Positive
267.07
Positive
243.53
Positive
Market Momentum
6.01
Negative
66.53
Neutral
87.99
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLK, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 289.40, equal to the 50-day MA of 278.25, and equal to the 200-day MA of 243.53, indicating a bullish trend. The MACD of 6.01 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 87.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLK.
XLK Peer Comparison
Comparison Results
Performance Comparison
XLK
Technology Select Sector SPDR Fund
300.39
79.55
36.02%
VGT
Vanguard Information Technology ETF
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XLF
Financial Select Sector SPDR Fund
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IYW
iShares U.S. Technology ETF
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FTEC
Fidelity MSCI Information Technology Index ETF
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SOXX
iShares Semiconductor ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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