Our goal in this profile is to help investors wade through the many competing ETF offerings available. Using our long experience as an ETF publication , we can help select those ETFs that matter and may not be repetitive. The result is a more manageable list of issues from which to view and make selections.
There are currently nearly three dozen ETFs oriented to the technology sector with more on the way. The following analysis features a fair representation of ETFs available. We believe from these investors may choose an appropriate ETF to satisfy the best index-based offerings individuals and financial advisers may utilize.
We're not ranking these ETFs favoring one over another so don't let the listing order mislead you. Although we may use some of these in ETF Digest portfolios it's not our intention to recommend one over another.ETFs are based on indices tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones and so forth. Also included are some so-called "enhanced" indices that attempt to achieve better performance through more active management of the index. Previously we had avoided using HOLDRS but now that Van Eck is most likely taking over these issues some like SMH (ML Semiconductor HOLDRS) will be popular. Where competitive issues exist and/or repetitive issues available at a fee cost saving we mention those as other choices. New issues are coming to market consistently (especially globally) and sometimes these issues will need more seasoning before they may be included at least in our listings. For sophisticated traders and investors wishing to hedge or speculate leveraged long/short and inverse issues are available from ProShares and DirexionShares. XLK (SPDR Technology Sector ETF) follows the Technology Select Sector Index which basically breaks down the S&P 500 to those companies involved in technology and relevant subsectors. The fund was launched December 1998. The expense ratio is .20%. AUM (Assets under Management) equal $7 billion while average daily trading volume is over 14M shares. As of late-September 2011 the annual dividend yield is 1.42% and YTD return -2.78%.
Data as of September 2011
XLK Top Ten Holdings & Weightings
- Apple, Inc. (AAPL): 14.60%
- International Business Machines Corp (IBM): 8.55%
- Microsoft Corporation (MSFT): 8.10%
- AT&T Inc (T): 6.92%
- Google, Inc. (GOOG): 5.58%
- Oracle Corporation (ORCL): 4.51%
- Verizon Communications Inc (VZ): 4.22%
- Intel Corp (INTC): 3.74%
- Qualcomm, Inc. (QCOM): 3.55%
- Cisco Systems Inc (CSCO): 3.54%