XLK: STATE STREET(R) TECHNOLOGY SELECT SECTOR SPDR(R) ETF
Share-split context: A forward split was recorded on Dec 5, 2025 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
ETF Education Report: XLK (STATE STREET(R) TECHNOLOGY SELECT SECTOR SPDR(R) ETF)
What this ETF is trying to do
The XLK ETF focuses on the technology sector. It holds a variety of companies involved in tech. Because this is a "partial" list, we are only looking at the largest companies held by the fund. Some of its top holdings include NVIDIA Corp, Apple Inc, Microsoft Corp, and Advanced Micro Devices Inc. These holdings can change over time.
What the numbers show
When looking at ETF performance, it is important to know the difference between "price return" and "total return."
• Price Return: This measures only how much the share price changed.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out.
For XLK, the numbers show strong growth:
• Year-to-Date (YTD): The price return is approximately 39.88%, while the total return is approximately 40.38%.
• One-Year: The price return is approximately 40.99%, and the total return is approximately 41.70%.
• Three-Year: The price return is approximately 139.44%, and the total return is approximately 143.96%.
This ETF has a history of "forward splits." The most recent was on December 5, 2025. In a forward split, each old share becomes multiple new shares. This makes the price per share lower, but it does not change how much of the company you own.
Income and distribution explanation
Some investors look for "distributions," which is cash paid out to shareholders. XLK has a distribution yield of approximately 0.41%. This means the cash paid out is small compared to the total price of the ETF. The fund usually pays these out quarterly, and it has made 4 payments in the last 12 months.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases significantly over time. It is important to note that a falling share price does not always mean NAV erosion is happening. For this ETF, the erosion-risk score is 100, and the label shows "No price erosion detected." There is no severe erosion-risk flag for this fund.
Pros
• The ETF has shown high price returns over the last one, three, and five years.
• The erosion-risk measurement is considered "good."
Cons
• The distribution yield is relatively low.
• Because it focuses on the technology sector, its performance is tied to how tech companies do.
Beginner takeaway
XLK is a technology-focused ETF that has experienced significant price growth. When studying this fund, remember to look at the "total return" to see how much you would have earned including distributions. Also, keep in mind that while this fund has a history of share splits, those are structural changes and not a loss of value.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 15.30% |
| 2 | APPLE INC | AAPL | 13.79% |
| 3 | MICROSOFT CORP | MSFT | 10.42% |
| 4 | ADVANCED MICRO DEVICES INC | AMD | 5.09% |
| 5 | BROADCOM INC | AVGO | 4.74% |
| 6 | MICRON TECHNOLOGY INC | MU | 4.50% |
| 7 | INTEL CORP | INTC | 3.46% |
| 8 | n/a | PLTR | 2.50% |
| 9 | CISCO SYSTEMS INC | CSCO | 2.38% |
| 10 | LAM RESEARCH CORP | LRCX | 2.18% |