XLK vs. IYW: Which Tech ETF Is Better for Investors in the Second Half of 2026?
Compare portfolio breadth, risk profiles, and dividend yields as two leading tech ETFs take different approaches to sector exposure.
Overview
The technology sector remains a cornerstone of modern portfolios, frequently driven by high-growth semiconductor and software companies. Analyzing State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) alongside iShares U.S. Technology ETF (NYSEMKT:IYW) illustrates how differing indexing strategies may influence cost, concentration, and performance over time for investors seeking tech-heavy growth.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Fees represent a significant point of divergence, as the State Street fund is notably more affordable with an expense ratio of 0.08%. This is considerably lower than the 0.38% charged by its iShares peer. Furthermore, the State Street fund offers a higher trailing payout.
Details
Source
Originally published at www.fool.com.