About XLK ETF
The State Street Technology ETF (XLK) is one of the largest tech ETFs and invests in large and mid-cap technology stocks across the U.S and is managed by State Street Global Advisors that has a total AUM of $2.73T.
XLK is an exchange-traded fund incorporated in the USA in Dec 1998. It seeks to provide exposure to companies from technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components; and wireless telecommunication services.
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
The State Street Technology ETF (XLK) tracks the S&P Technology Index that invests in large cap technological stocks across the US.
XLK has invested 91% of its assets in Technology and the rest of the 9% in Telecommunications.
XLK has invested 100% of its assets in the U.S.
XLK includes the big names associated with technology sector but also a few such as financial payment processors or telecom firms. Its limited selection universe excludes small and midcaps. Avoiding smaller, less-stable firms results in lower volatility and higher liquidity.
According to ETFdb.com, "XLK grants investors the opportunity to gain exposure to numerous powerhouse tech firms all under a single ticker."
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How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R- squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the inhouse research/quant analysts team. XLK is among the cheapest and largest funds in its segment and the most liquid and hence for active traders and investors, it is the go-to-choose in the segment. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.