XLK vs. IYW: Which Tech ETF Is Better for Investors in the Second Half of 2026?

Sarah Sidlow, The Motley Fool

Thu, July 2, 2026 astatine 6:53 AM CDT 4 min read

The exertion assemblage remains a cornerstone of modern portfolios, often driven by high-growth semiconductor and bundle companies. Analyzing State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) alongside iShares U.S. Technology ETF (NYSEMKT:IYW) illustrates however differing indexing strategies whitethorn power cost, concentration, and show implicit clip for investors seeking tech-heavy growth.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Fees correspond a important constituent of divergence, arsenic the State Street money is notably much affordable with an disbursal ratio of 0.08%. This is considerably little than the 0.38% charged by its iShares peer. Furthermore, the State Street money offers a higher trailing payout.

Performance & hazard examination

What's wrong

State Street Technology Select Sector SPDR ETF maintains a concentrated portfolio of 74 stocks, providing 100% exertion exposure. Its largest positions see Nvidia astatine 12.8%, Apple at 11.6%, and Microsoft at 7.7%. It was launched successful 1998. State Street Technology Select Sector SPDR ETF has paid $0.79 per stock implicit the trailing 12 months, which connected its caller ~$190.52 stock terms works retired to a 0.4% yield.

The iShares U.S. Technology ETF provides broader sum by holding 148 stocks, offering much varied vulnerability than its much concentrated peer. Its apical holdings see Nvidia astatine 12.82%, Apple astatine 11.60%, and Microsoft astatine 8.19%. It was launched successful 2000. iShares U.S. Technology ETF has paid $0.26 per stock implicit the trailing 12 months, which connected its caller ~$252.23 stock terms works retired to a 0.1% yield.

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