State Street Technology Select Sector SPDR ETF(XLK)
AI Look-Through Summary
AI GeneratedThe State Street Technology Select Sector SPDR Fund maintains an overwhelming concentration within the technology sector, which accounts for 97.1% of its total assets under management, with communication services representing a negligible 0.9%. This structural tilt indicates that the fund's performance is almost entirely dependent on the equity markets within this specific industry vertical rather than providing broad diversification across other economic sectors. The portfolio exhibits significant top-heavy concentration, where the largest ten holdings collectively dominate the asset allocation landscape. Notably, NVIDIA alone commands a 15.1% weight, followed by Apple at 12.3% and Microsoft at 8.7%, meaning these three constituents individually represent nearly one-third of the entire fund's value.
Such high weighting in mega-cap technology leaders like NVIDIA, Apple, and Microsoft suggests that the ETF's volatility profile will closely mirror the price movements of these specific giants rather than reflecting a wider array of smaller or mid-cap tech companies. The remaining significant portions are held by other major players including Broadcom, Micron, AMD, Intel, Cisco, Lam Research, and Applied Materials, all falling under the same sector classification. With an aggregate market capitalization exceeding $84 billion in assets under management, this fund serves as a direct proxy for the performance of large-cap technology equities listed on US exchanges. The data reveals a strategy that offers deep exposure to established industry leaders while inherently exposing investors to the correlation risks associated with holding such a narrow slice of the global equity market.
Generated by Qwen-32B from constituent-level data. Not investment advice. Updated: 2026-05-22 04:55:24.543116+00
🔍 Theme Alignment Audit
AI GeneratedPurity: 95/100The investment theme of the State Street Technology Select Sector SPDR ETF is executed with exceptional fidelity, as nearly all assets within the portfolio are classified under the technology sector. The top holdings list reinforces this alignment exclusively featuring major industry participants such as NVIDIA, Apple, and Microsoft, which serve as primary drivers for the fund's performance without introducing unrelated sectors or thematic drifts. There are no instances of broad-market stabilization through non-technology names; instead, the composition remains tightly bound to the specific technological innovation narrative implied by its designation. This structural consistency suggests that the fund operates strictly within its defined mandate, avoiding the dilution often seen in sector funds that inadvertently include financial services or healthcare giants under vague thematic umbrellas.
Sector concentration presents a distinct profile where technology accounts for over ninety-seven percent of total assets, leaving minimal exposure to communication services and virtually no presence in other industries. This heavy weighting creates a high degree of correlation with the broader technology index while simultaneously demonstrating limited differentiation from that same benchmark due to overlapping holdings among large-cap equities. The top ten positions alone command approximately sixty-three percent of the portfolio value, indicating significant reliance on mega-capitalization stocks which can amplify volatility during market shifts despite the thematic purity. While the fund successfully isolates itself from non-technology sectors, its heavy dependence on a handful of dominant players means that returns will largely mirror those specific companies rather than offering broad-based sector diversification or unique strategic exposure beyond standard large-cap technology performance.
AI analysis of holdings alignment vs fund theme. Not investment advice. Updated: 2026-05-17 18:26:49.568723+00
⚠️ Systemic Risk Synthesis
AI GeneratedThe newly disclosed risk factors from the top holdings of the State Street Technology Select Sector SPDR ETF highlight a convergence of systemic threats centered on regulatory evolution and operational resilience. A dominant macro-level concern is the increasing stringency of compliance requirements across climate change, data privacy, and artificial intelligence governance. Multiple companies indicate that adherence to these emerging frameworks could materially impact financial conditions by driving up operational costs and potentially constraining business operations or competitive positioning. This suggests a sector-wide exposure where external regulatory shifts are no longer peripheral but are being explicitly identified as material risks capable of affecting the bottom line for major technology players.
The concentration of these shared risk categories within the fund's largest positions signals a high degree of correlated downside potential. With the top three holdings by weight—representing nearly 35% of the portfolio—all flagging significant exposure to regulatory compliance in areas such as AI, cybersecurity, and environmental standards, the ETF faces a unified vulnerability rather than diversified idiosyncratic risk. If regulators intensify scrutiny or enforcement regarding data privacy or climate mandates across jurisdictions, the financial impact could be synchronized across these major constituents simultaneously. This clustering of specific regulatory risks among the heaviest weights amplifies the potential for broad-based portfolio volatility should policy landscapes shift unfavorably.
While systemic issues dominate the current disclosures, individual company-specific factors remain relevant due to their weighting within the fund. For instance, NVIDIA's substantial 14.5% allocation means that any material adverse impact from AI regulation or cybersecurity cost increases would have a disproportionately large effect on the ETF's overall performance compared to smaller holdings. Similarly, while less weighted than NVDA, other semiconductor and software firms also face these overlapping regulatory headwinds, reinforcing the theme of sector-wide exposure rather than isolated corporate challenges. The data indicates that the fund's risk profile is increasingly tied to external policy developments more so than internal operational metrics alone.
Synthesized from constituent 10-K risk factor disclosures. Not investment advice. Updated: 2026-05-24 10:41:59.387292+00
🏢 Sector Analysis
AI GeneratedThe State Street Technology Select Sector SPDR ETF exhibits an overwhelmingly concentrated exposure to the technology sector, which accounts for 97.0% of its assets across fifty-nine holdings. This near-total dedication aligns with a pure-play investment thesis targeting companies primarily engaged in software development, hardware manufacturing, and semiconductor production while deliberately excluding broader market diversification. The minimal allocation of less than one percent to communication services serves as a negligible hedge but does not meaningfully alter the fund's fundamental risk profile or sector identity.
Concentration risk is pronounced within this structure, evidenced by the top five holdings comprising more than half of the portfolio and the top ten positions representing 62.7% of total assets. Such a distribution creates significant sensitivity to the performance of specific market leaders like Nvidia, Apple, Microsoft, Broadcom, and Micron; any adverse movement in these giants would disproportionately impact overall fund returns compared to a broadly diversified equity vehicle. This heavy reliance on a small number of constituents suggests an investment strategy that prioritizes exposure to dominant innovators rather than mitigating idiosyncratic company risk through diversification across hundreds of smaller firms.
Furthermore, the composition implies a strong tilt toward large-cap growth factors and momentum characteristics inherent in the current technology leadership hierarchy. By holding such substantial weights in high-flying equities without balancing sectors like healthcare or consumer staples, the fund inherently captures upside potential from technological acceleration while simultaneously accepting heightened volatility tied to earnings cycles and macroeconomic shifts affecting tech valuations. The data indicates a vehicle designed for investors seeking aggressive sector-specific exposure rather than balanced portfolio construction.
AI-generated sector analysis from constituent-level data. Not investment advice. Updated: 2026-05-20 18:53:23.684777+00
Flow Driver Analysis
2-Step CircleWhich larger ETFs share XLK's holdings — and mechanically drive its price through index rebalancing flows?
Approximately 100% of XLK's weight flows through these larger ETFs
| Driver ETF | AUM | Expense | Shared Stocks | Weight Overlap |
|---|---|---|---|---|
| SPYState Street SPDR S&P 500 ETF Trust | $640B | 0.09% | 74 | 100.0% |
| SPTMSPTM | $12B | — | 74 | 100.0% |
| VOOVanguard S&P 500 ETF | $1.5T | 0.03% | 73 | 99.9% |
| VGTVGT | $122B | — | 73 | 99.9% |
| VTIVanguard Total Stock Market Index Fund ETF Shares | $2.1T | 0.03% | 63 | 98.6% |
100% of XLK's portfolio by weight is also held by SPY, which commands 8× more assets under management. When SPY receives inflows, it mechanically buys these shared stocks — dragging XLK's NAV along regardless of any thematic or sector catalyst. Combined, the top 5 overlapping ETFs control exposure to 100% ofXLK's weight.
Overlap computed from constituent-level holdings data across 5 ETFs. Price co-movement with driver ETFs is structural, not coincidental. Not investment advice.
ETF Look-Through Dashboard
Replaces $249/yr MorningstarPeer through the ETF wrapper to see exactly what you own. Every metric is computed from constituent-level data.
Weighted metrics calculated based on 95% of fund assets with available data.
Herfindahl-Hirschman Concentration Index
Morningstar-Style Box
Sector & Cap Explorer
ETF Fundamental Radar
Operational health is mixed, with the bulk of weight in the mid-range (4–6) Piotroski scores.
Piotroski F-Score (Operational Health)
Score 0-9: Measures Profitability, Leverage, and Efficiency
Computed by rolling up individual stock Piotroski F-Scores, Altman Z-Scores, and Beneish M-Scores weighted by each constituent's allocation. Data that Vanguard and BlackRock don't surface.
Dividend Safety True-Up
DeterministicThe dividend-paying companies inside XLK collectively pay out 29% of their Free Cash Flow to maintain the current yield. This leaves a substantial cash buffer, making dividend cuts unlikely even in a downturn. Based on 73% of fund weight in dividend-paying stocks.
FCF Payout Ratio = Dividends Paid / Free Cash Flow, weighted by constituent allocation. Not investment advice.
Earnings vs. Price Decomposition
ProprietaryXLK is up 68.4% over the last 12 months. The underlying weighted earnings growth of its constituents is +62.7%. The remaining +5.7% of performance is driven by multiple expansion (P/E inflation) — prices rose faster than earnings grew.
Earnings growth = weighted average YoY EPS growth of all constituents (capped at ±500% to limit outlier distortion). Based on 93% of fund weight with earnings data. Not investment advice.
Value Creation Map
ROIC vs WACCWhat percentage of XLK's weight is allocated to companies that create economic value (ROIC > WACC) vs. destroy it?
Of XLK's analyzed weight, 68% is invested in companies earning more than their cost of capital — genuine value creators. The remaining 32% consists of companies whose ROIC falls below their WACC, effectively destroying shareholder value with every dollar invested.
ROIC-WACC spread for 96% of fund weight with available data. Not investment advice.
Concentration Risk Monitor
HIGHNVDA at 14.5% contributes an estimated 36% of portfolio variance.XLK holds 50 stocks but behaves like an 17-stock portfolio due to weight concentration in the top holdings.
Effective # of Stocks = 1 / HHI (Herfindahl-Hirschman Index). Variance share approximated as w² / Σw². Not investment advice.
Passive Crowding Score
MODERATEHow much of each constituent's market cap is structurally locked in passive ETFs — a proxy for liquidity fragility during sell-offs.
XLK has a Passive Crowding Score of 37/100. On average, 11.1% of the market capitalization of XLK's underlying holdings is structurally locked in passive ETF vehicles. This indicates moderate passive ownership density. Index rebalances and ETF creation/redemption activity can amplify short-term volatility in the underlying holdings.
Passive $ = Σ(ETF AUM × holding weight) across all 52 tracked ETFs. Actual passive ownership is higher (includes mutual funds, pension funds). Not investment advice.
Under the Hood — Top 15 Constituents
| # | Ticker | Company | Weight | P/E | F-Score |
|---|---|---|---|---|---|
| 1 | NVDA | NVIDIA CORP Technology | 14.54% | 32.4x | 4/9 |
| 2 | AAPL | APPLE INC Technology | 12.20% | 37.7x | 8/9 |
| 3 | MSFT | MICROSOFT CORP Technology | 8.48% | 26.8x | 5/9 |
| 4 | MU | MICRON TECHNOLOGY INC Technology | 5.69% | 45.9x | 7/9 |
| 5 | AVGO | BROADCOM INC Technology | 5.36% | 86.9x | 8/9 |
| 6 | AMD | ADVANCED MICRO DEVICES Technology | 4.87% | 172.6x | 7/9 |
| 7 | INTC | INTEL CORP Technology | 3.69% | — | 6/9 |
| 8 | CSCO | CISCO SYSTEMS INC Technology | 3.10% | 40.1x | 8/9 |
| 9 | LRCX | LAM RESEARCH CORP Technology | 2.51% | 60.3x | 7/9 |
| 10 | AMAT | APPLIED MATERIALS INC Technology | 2.25% | 42.4x | 6/9 |
| 11 | ORCL | ORACLE CORP Technology | 2.14% | 40.5x | 5/9 |
| 12 | PLTR | PALANTIR TECHNOLOGIES INC A Technology | 2.08% | 175.9x | 8/9 |
| 13 | TXN | TEXAS INSTRUMENTS INC Technology | 1.80% | 52.3x | 7/9 |
| 14 | KLAC | KLA CORP Technology | 1.60% | 54.3x | 8/9 |
| 15 | IBM | INTL BUSINESS MACHINES CORP Technology | 1.57% | 26.4x | 6/9 |
Historical Holdings Snapshots
Browse how XLK’s holdings have changed across SEC filing dates. Showing top holdings per snapshot.
2026-05-24
15 holdings · 71.9% tracked weight| # | Ticker | Weight | Shares | Market Value |
|---|---|---|---|---|
| 1 | NVDA | 14.54% | 76,977,828 | — |
| 2 | AAPL | 12.20% | 46,507,129 | — |
| 3 | MSFT | 8.48% | 23,522,997 | — |
| 4 | MU | 5.69% | 8,683,957 | — |
| 5 | AVGO | 5.36% | 15,019,465 | — |
| 6 | AMD | 4.87% | 12,579,583 | — |
| 7 | INTC | 3.69% | 36,226,927 | — |
| 8 | CSCO | 3.10% | 30,484,976 | — |
| 9 | LRCX | 2.51% | 9,635,024 | — |
| 10 | AMAT | 2.25% | 6,124,010 | — |
| 11 | ORCL | 2.14% | 13,083,406 | — |
| 12 | PLTR | 2.08% | 17,624,943 | — |
| 13 | TXN | 1.80% | 7,002,311 | — |
| 14 | KLAC | 1.60% | 1,011,328 | — |
| 15 | IBM | 1.57% | 7,212,035 | — |
2026-05-23
15 holdings · 71.9% tracked weight| # | Ticker | Weight | Shares | Market Value |
|---|---|---|---|---|
| 1 | NVDA | 14.54% | 76,977,828 | — |
| 2 | AAPL | 12.20% | 46,507,129 | — |
| 3 | MSFT | 8.48% | 23,522,997 | — |
| 4 | MU | 5.69% | 8,683,957 | — |
| 5 | AVGO | 5.36% | 15,019,465 | — |
| 6 | AMD | 4.87% | 12,579,583 | — |
| 7 | INTC | 3.69% | 36,226,927 | — |
| 8 | CSCO | 3.10% | 30,484,976 | — |
| 9 | LRCX | 2.51% | 9,635,024 | — |
| 10 | AMAT | 2.25% | 6,124,010 | — |
| 11 | ORCL | 2.14% | 13,083,406 | — |
| 12 | PLTR | 2.08% | 17,624,943 | — |
| 13 | TXN | 1.80% | 7,002,311 | — |
| 14 | KLAC | 1.60% | 1,011,328 | — |
| 15 | IBM | 1.57% | 7,212,035 | — |
2026-05-22
15 holdings · 72.1% tracked weight| # | Ticker | Weight | Shares | Market Value |
|---|---|---|---|---|
| 1 | NVDA | 14.92% | 76,988,713 | — |
| 2 | AAPL | 12.19% | 46,513,684 | — |
| 3 | MSFT | 8.57% | 23,526,357 | — |
| 4 | MU | 5.51% | 8,685,137 | — |
| 5 | AVGO | 5.44% | 15,021,560 | — |
| 6 | AMD | 4.88% | 12,581,318 | — |
| 7 | INTC | 3.74% | 36,232,052 | — |
| 8 | CSCO | 3.02% | 30,489,291 | — |
| 9 | LRCX | 2.44% | 9,636,329 | — |
| 10 | AMAT | 2.26% | 6,124,845 | — |
| 11 | ORCL | 2.13% | 13,085,236 | — |
| 12 | PLTR | 2.10% | 17,627,418 | — |
| 13 | TXN | 1.85% | 7,003,301 | — |
| 14 | KLAC | 1.60% | 1,011,468 | — |
| 15 | QCOM | 1.45% | 8,233,646 | — |
2026-05-21
15 holdings · 71.9% tracked weight| # | Ticker | Weight | Shares | Market Value |
|---|---|---|---|---|
| 1 | NVDA | 15.06% | 77,118,887 | — |
| 2 | AAPL | 12.33% | 46,592,334 | — |
| 3 | MSFT | 8.71% | 23,566,133 | — |
| 4 | AVGO | 5.48% | 15,046,970 | — |
| 5 | MU | 5.38% | 8,699,833 | — |
| 6 | AMD | 4.62% | 12,602,592 | — |
| 7 | INTC | 3.56% | 36,293,322 | — |
| 8 | CSCO | 3.12% | 30,540,837 | — |
| 9 | LRCX | 2.34% | 9,652,631 | — |
| 10 | AMAT | 2.21% | 6,135,207 | — |
| 11 | PLTR | 2.11% | 17,657,228 | — |
| 12 | ORCL | 2.11% | 13,107,368 | — |
| 13 | TXN | 1.88% | 7,015,137 | — |
| 14 | KLAC | 1.56% | 1,013,184 | — |
| 15 | QCOM | 1.43% | 8,247,572 | — |
2026-05-20
15 holdings · 71.9% tracked weight| # | Ticker | Weight | Shares | Market Value |
|---|---|---|---|---|
| 1 | NVDA | 15.08% | 77,219,476 | — |
| 2 | AAPL | 12.20% | 46,653,109 | — |
| 3 | MSFT | 8.78% | 23,596,869 | — |
| 4 | AVGO | 5.57% | 15,066,605 | — |
| 5 | MU | 5.21% | 8,711,189 | — |
| 6 | AMD | 4.67% | 12,619,031 | — |
| 7 | INTC | 3.45% | 36,340,667 | — |
| 8 | CSCO | 3.19% | 30,580,668 | — |
| 9 | LRCX | 2.36% | 9,665,228 | — |
| 10 | AMAT | 2.23% | 6,143,214 | — |
| 11 | ORCL | 2.15% | 13,124,470 | — |
| 12 | PLTR | 2.10% | 17,680,263 | — |
| 13 | TXN | 1.85% | 7,024,283 | — |
| 14 | KLAC | 1.56% | 1,014,510 | — |
| 15 | QCOM | 1.48% | 8,258,333 | — |
2026-05-19
15 holdings · 72.1% tracked weight| # | Ticker | Weight | Shares | Market Value |
|---|---|---|---|---|
| 1 | NVDA | 15.11% | 77,237,227 | — |
| 2 | AAPL | 12.17% | 46,663,834 | — |
| 3 | MSFT | 8.65% | 23,602,293 | — |
| 4 | AVGO | 5.56% | 15,070,067 | — |
| 5 | MU | 5.48% | 8,713,190 | — |
| 6 | AMD | 4.65% | 12,621,932 | — |
| 7 | INTC | 3.43% | 36,349,022 | — |
| 8 | CSCO | 3.14% | 30,587,697 | — |
| 9 | LRCX | 2.39% | 9,667,451 | — |
| 10 | AMAT | 2.33% | 6,144,627 | — |
| 11 | ORCL | 2.20% | 13,127,488 | — |
| 12 | PLTR | 2.06% | 17,684,328 | — |
| 13 | TXN | 1.85% | 7,025,897 | — |
| 14 | KLAC | 1.59% | 1,014,744 | — |
| 15 | QCOM | 1.45% | 8,260,232 | — |
Source: SEC filings and fund provider disclosures. Shows last 6 snapshot dates, top 15 holdings per date by weight.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Computed from 1,200+ trading days with 5% risk-free rate.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this ETF's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Price Chart with Moving Averages
What Drove XLK Today?
Daily return attribution — which holdings contributed most (and least) to the fund's move.
Technical Setup
AI GeneratedThe XLK ETF is trading below its 50-day moving average but above the 200-day moving average, indicating a potential near-term consolidation phase. The RSI at 45.4 suggests that the near-term momentum is neutral to slightly bearish, lacking strong upward pressure.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the ETF's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Yield & Income
Sector Drift Over Time
How XLK’s sector allocation has shifted across snapshots. Use the slider to travel through time.
Active Conviction Tracker
Shares bought and sold between the latest two data snapshots — reveals what the fund manager is actually doing.
Explore More
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB is for informational purposes only. Not investment advice.