State Street’s XLK fund holds 76 stocks but derives most performance from just 18 equally weighted names, led by Nvidia and Apple.
The Technology Select Sector SPDR ETF (XLK) tracks the Technology Select Sector Index but behaves like a concentrated portfolio. Its top 10 holdings account for 60% of total assets, with Nvidia alone representing 13.9% of the fund.
Despite holding 76 stocks, XLK’s performance is driven by a small group of large-cap tech firms. The five largest positions make up 44% of assets, including Apple at 12.5% and Microsoft at 7.8%. The fund’s label suggests broad exposure, but its structure tilts heavily toward semiconductors and dominant tech names.
Investors seeking diversified tech exposure may find XLK’s concentration surprising, as the fund’s returns hinge on a handful of high-profile companies rather than the sector as a whole.