XLK Stock Recent News
XLK LATEST HEADLINES
XLK faces a pivotal week with over a third of IT companies reporting earnings, including Microsoft. Strong double-digit growth and robust earnings in the IT sector are expected to drive XLK's rich outlook; XLK upgraded to Buy. Rebalancing in XLK sees Nvidia replacing Apple as the second-highest weighted position, while overall allocation to semiconductor stocks also increases.
Launched on 12/16/1998, the Technology Select Sector SPDR ETF (XLK) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
If you want to invest a bit more aggressively in the stock market, there's a way to do that without taking on an excessive amount of risk. Tech stocks could deliver outsized gains in the long run as they benefit from the boom in artificial intelligence.
In the first half of 2024, I published a lot of content on ETF Trends and VettaFi's other websites. Pieces included a focus on free cash flow ETFs, robotics, and the success of newer ETF entrants.
XLK's recent performance is likely to attract more momentum seeking investors, but there are significant risks involved. Extreme concentration within the ETF is making it less likely that it will continue to outperform more diversified alternatives. The current set-up also does not favour momentum stocks and this is a major red flag for the ETF's future performance.
The S&P 500 continues to achieve new records, with tech stocks expected to drive the bull run in the second half of 2024. Investing in tech ETFs like XLK can offer exposure to the tech sector while lowering risks associated with single-stock investments. SCHG may be the best option for investors seeking big risk-adjusted returns in the current bull run, with a strong portfolio and quant analysis rating.
The AI frenzy emphasized the significance of the extensive opportunities within the AI ecosystem. As a result, investors are leaving no stone unturned to tap the AI ecosystem in every form.
On this week's episode of ETF Prime, host Nate Geraci spoke with Roxanna Islam, CFA, CAIA, head of sector & industry research at VettaFi. Islam and Geraci discussed a tech ETF rebalance and gave an outline for what to expect for spot ether ETFs.
Technology sector has outperformed since October '23, but recently saw extreme divergence with a gain of over 9% while other sectors dropped. XLK underwent quarterly rebalancing, reducing Apple's weight while increasing Nvidia's, leading to instability in the sector. XLK's correction may stabilize, with key levels at $221.95 and $217.72 determining future momentum.
Technology Select Sector SPDR Fund (XLK) is poised for a big rebalance this week. This shake-up will increase the exposure to NVIDIA Corp. (NVDA) at the expense of Apple Inc. (AAPL).