ETF Trends
ETF Trends

State Street Global Advisors is helping investors sift through the technology space to target internet and hardware sub-industries with two new exchange traded funds.

SSGA recently launched the SPDR S&P Technology Hardware ETF (NYSEArca: XTH) and the SPDR S&P Internet ETF (NYSEArca: XWEB). Both new funds come with a 0.35% expense ratio.

“The US technology-related landscape includes a wide range of companies; from younger firms focused on cutting edge products to the largest, most well-known brands,” Nick Good, co-head of the Global SPDR business at State Street Global Advisors, said in a press release. “Investors have asked us for solutions to help refine their investment options by gaining access to technology-related sub-industries that are found in XTH and XWEB. In addition, with a modified equal weighted approach, investors may reduce the risk of being limited to a portfolio driven by one or two large names, relative to a market cap weighted approach.”

XTH will try to reflect the performance of the S&P Technology Hardware Select Industry Index, which is comprised of the hardware segment of the S&P Total Market Index.

Related: Brexit is a Problem for Tech ETFs

Specifically, the ETF includes a 42.8% tilt toward tech hardware storage & peripherals, 31.0% electronic equipment & instruments and 26.1% electronic components. XTH’s top holdings include FEI Company (NasdaqGS: FEIC) 3.0%, Lexmark International (NYSE: LXK) 3.0% and 3D Systems Corp (NYSE: DDD) 3.0%.

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