Technology SPDR (XLK)
AAPL Stock Weight: 15.6%
At $13 billion in assets, the Technology SPDR (XLK) by State Street Global Advisors is the big kahuna of its respective space — which is something you can say about pretty much any Select Sector fund.
Like the IYW, the XLK is bursting at the seams with AAPL stock, sporting a 15.6% weighting in Apple currently. Like the IYW, XLK also gives big nods toward GOOG and MSFT, which hold respective weights of 9.1% and 8.9%. Also like the IYW, the lion’s share (63%) of this fund is found in the top 10 holdings, even though it has a nice, large number of holdings (74).
Unlike the IYW, which is almost entirely tech-focused, XLK has several “kind of” tech stocks in the communications and financial services industries as well. For instance, two top holdings in the VGT are AT&T (T) and Verizon (VZ), which make up a combined 10% of the fund. Also joining AAPL stock in the fund are Visa (V) and MasterCard (MA).
Longer-term, XLK has slightly underperformed the IYW, but it does offer a slightly higher yield at 1.74% than our first one-off AAPL investment. Expenses are a low 0.18%.