XNTK ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
This ETF tracks the NYSE Technology Index and invests in 35 leading technology companies using an equal-weighting method, seeking balanced growth within the sector.
SubscribeWhat Is This ETF?
The fund selects 35 companies leading technological innovation and holds each at an equal weight. It is distinctive in that it covers not only information technology but also technology-related consumer services companies.
It suits investors who want broad exposure to the growth of a variety of mid- and large-cap technology stocks rather than a concentration in a few mega-cap names.
Launched by State Street (SSGA) in 2000, it is a passive (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | NYSE Technology Index |
| Management Style | Passive (equal-weighted) |
| Rebalancing Frequency | Once a year (regular) |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.35% |
Regardless of market capitalization, the fund allocates an equal weight to each of the 35 companies in the index. This limits the impact that price swings in any single giant company have on the overall portfolio and creates a structure that is advantageous during sector rotation markets.
- Equal-weighting applied to 35 core technology stocks
- Includes technology-related consumer sectors beyond information technology
Size and Costs
Assets under management (AUM) stand at $1.9B, and the expense ratio is 0.35% per year.
Compared with market-cap-weighted funds such as XLK and VGT, its concentration in top holdings is lower, which sets it apart by allowing a more diversified technology portfolio.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund tends to perform relatively well when gains spread across technology stocks as a whole rather than in a rally led by Big Tech, and it reacts sensitively to shifts in the business cycle for semiconductor and component stocks.
It draws attention as an alternative way to invest in tech when valuation concerns about mega-cap technology stocks grow, and both institutional and retail investors have tended to show steady fund inflows.
Pros and Cons
Its strengths are avoiding large-cap concentration and delivering balanced growth within the sector, but a relatively high expense ratio and low trading volume are risk factors.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
If you want to minimize costs while focusing on the largest technology stocks by market cap, XLK or VGT from the table may be a better choice. On the other hand, if you want exposure to the overall growth of the Nasdaq 100 Index, consider QQQ, and if you want investment specialized only in semiconductors, SOXX is also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGT | Vanguard Information Technology ETF | $120.97 | +1.5% | $147.5B | 0.09% | 0.39% | +25.0% |
 XLK | State Street Technology Select Sector SPDR ETF | $186.32 | +1.7% | $121.0B | 0.08% | 0.45% | +26.9% |
 SOXX | iShares Semiconductor ETF | $491.83 | +2.9% | $45.1B | 0.33% | 0.25% | +66.2% |
 IYW | iShares U.S. Technology ETF | $252.88 | +1.2% | $24.3B | 0.37% | 0.1% | +24.5% |
 FTEC | Fidelity MSCI Information Technology Index ETF | $288.61 | +1.5% | $21.1B | 0.08% | 0.38% | +25.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| MU | Micron Technology Inc | 0.14% | $903.70 | +3.0% | $1.02T | 12.2 | 0.08% |
| INTC | Intel Corp | 0.08% | $90.47 | +4.0% | $478.2B | - | 0.05% |
| MRVL | Marvell Technology Inc | 0.07% | $233.78 | +2.3% | $205.0B | 77.0 | 0.1% |
| AMAT | Applied Materials Inc | 0.10% | $387.59 | +2.7% | $307.6B | 33.4 | 0.5% |
| AMD | Advanced Micro Devices Inc | 0.06% | $531.28 | +2.8% | $867.3B | 136.3 | - |
| LRCX | Lam Research Corp | 0.10% | $237.50 | +3.2% | $297.2B | 35.3 | 0.55% |
| ASML | ASML Holding NV | 0.04% | $1590.90 | +1.2% | $613.2B | 39.2 | 0.65% |
Investor Checkpoints
These are the key factors to consider before making a final decision on XNTK. It is important to approach the fund with a clear understanding of the distinctive characteristics of the equal-weighting method and its cost structure.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Confirm higher management costs versus leading competing products | High |
| 💧 Trading Liquidity | Whether you can trade smoothly when you want | Needs verification |
| 📊 Weighting Method | Understand performance differences versus market-cap weighting | Equal-weighted |
| 📈 Market Trend | Potential for a broad rally in technology stocks beyond Big Tech | Ongoing monitoring |
Note that an equal-weighted strategy may lag the index in bull markets led by giant companies, and adjusting your allocation to market conditions may be necessary.
It is a strategic tool for investors who want to reduce dependence on specific large-cap stocks and invest evenly across diverse opportunities within the technology sector, and it offers advantages in terms of portfolio diversification.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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