State Street Technology ETF vs iShares Technology ETF
XLK's lower fees and higher dividend yield appeal to cost-conscious investors, while IYW's broader portfolio of 149 holdings offers diversification across the Russell 1000 landscape.
Overview
Comparing State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) against iShares U.S. Technology ETF (NYSEMKT:IYW) reveals a significant gap in expense ratios and a choice between 78 or 154 holdings.
Both funds offer heavy exposure to the dominant players in the U.S. technology sector, serving as foundational tools for investors seeking long-term growth. While they share several top holdings, the differences in their tracking indexes -- one following a capped Russell 1000 index and the other focusing strictly on S&P 500 technology components -- result in varying levels of concentration. With billions of dollars in assets under management (AUM), these ETFs provide highly liquid access to the engines of the modern economy.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.