Technology Select Sector SPDR Fund: Difference between revisions

Revision as of 01:39, 30 July 2023

The Technology Select Sector SPDR Fund (the ''fund")strives to offer investment outcomes that are usually consistent with the price and yield performance of the Technology Select Sector Index (the "Index") before expenses(2).

In seeking to track the performance of the index, the fund employs a replication strategy, which means that the fund typically invests in substantially all of the securities represented in the index in approximately the same proportions as the index. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The fund is non-diversified.

This index, whose components include Apple, Microsoft, Nvidia, Broadcom, and Cisco, includes stocks primarily focused on internet software and service companies, IT consulting services, semiconductor equipment, computers, and peripherals (1).

ABOUT

Under normal market conditions, the Fund normally invests practically all of its total assets, but at least 95%, in the securities that comprise the Index. Prior to any major change in this 95% investing policy, the Fund will provide shareholders with at least 60 days' notice. Furthermore, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by the Fund's investment adviser, SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser").

The Index includes securities from the following industries: technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; information technology services; electronic equipment, instruments, and components; and wireless telecommunication services. The Index is one of eleven Select Sector Indexes created and maintained using the following criteria:

Each of the Index's component shares is a constituent company of the S&P 500 Index.
S&P Dow Jones Indices LLC ("S&P DJI") calculates the Index based on methodology proprietary to S&P DJI and BofA Merrill Lynch Research ("BofA Merrill Lynch") (S&P DJI and BofA Merrill Lynch, collectively, the "Index Provider"), using a "modified market capitalization" methodology, which means that modifications to the market capitalization weights of single stock concentrations may be made to conform to the requirements of the Internal Revenue Code of The Index contained 72 stocks as of November 30, 2017.

DISCLOSURE ABOUT DISRIBUTIONS

Dividends from stocks and interest from debt instruments are the two main sources of income for each Select Sector SPDR. On a quarterly basis, "income dividend distributions" are made to shareholders from these sums, after expenses. Every time a Select Sector SPDR sells shares, capital gains or losses are also realized. Annual "capital gain distributions" are made to shareholders in the form of net long-term capital gains. In general, whether you take distributions in cash or reinvest them in a Select Sector SPDR, they are taxed as federal income when they are paid. Distributions made from a Select Sector SPDR's earnings and profits are subject to ordinary income tax.Distributions of net long-term capital gains in excess of short-term capital losses are taxable as long-term capital gains, regardless of how long you have owned the shares.Tax information is provided in broad strokes. You should discuss the tax implications of investing in a Select Sector SPDR with your personal tax counsel (1).

FUND INFORMATION



BENCHMARK	TECHNOLOGY SELECT SECTOR INDEX
INCEPTION DATE	DEC 16 1998
OPTIONS AVAILABLE	YES
GROSS EXPENSE RATIO	0.10%
BASE CURRENCY	USD
ISSUER	STATE STREET GLOBAL ADVISORS FUNDS MANAGEMENT INC
INVESTMENT MANAGER	SSGA FUNDS MANAGEMENT ,INC.
MANAGEMENT TEAM	GLOBAL EQUITY BETA SOLUTIONS
LEGAL STRUCTURE	OPEN-ENDED FUND
DISTRIBUTOR	ALPS portfolio solutions distributor , inc.
DISTRIBUTOR FREQUENCY	Quarterly

(2)

RISKS

Select sector SPDR also may be unfavourable by the performace of specific company in the technology sector . Investing in the Fund carries inherent risks, just like any other investment. Fund shares will fluctuate in value, and you may lose money if you invest in the Fund. The Federal Deposit Insurance Corporation or any other government entity does not insure or guarantee investments in the Fund.

INDEX TRACKING RISK

The Fund is managed using an indexing investment approach, which seeks to replicate the performance of an unmanaged index of securities, regardless of the Index's current or future performance or the actual securities that comprise the Index.
an actively managed fund often tries to exceed a benchmark index. As a result, the Fund's performance may be less favorable than that of an active investment strategy-managed portfolio
The Index's structure and composition will impact its performance, volatility, and risk, as well as the Fund's performance, volatility, and risk. While the Adviser attempts to track the Index's performance
The Fund incurs a number of operating expenditures that are not applicable to the Index, as well as charges associated with buying and selling assets. Furthermore, the Fund may not be completely invested at times, typically as a result of cash flows into or out of the Fund or cash reserves kept by the Fund to cover redemptions.

TECHNOLOGY SECTOR RISK

the Fund will be more affected by the performance of the technology sector than a more diversified fund
Market or economic issues affecting technology companies and businesses that rely largely on technical breakthroughs may have a significant impact on the Fund's investments.
Stocks of technology companies and companies that rely heavily on technology are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and domestic and international competition, including competition from foreign competitors with lower production costs.

REFERENCES

1 https://www.sectorspdrs.com/mainfund/xlk

2 https://www.ssga.com/us/en/intermediary/etfs/funds/the-technology-select-sector-spdr-fund-xlk

3 https://www.etf.com/XLK

4 https://www.sectorspdr.com./

5 https://www.sectorspdr.com./api/documents/by-name/Annual%20Report

6 https://www.sec.gov/Archives/edgar/data/1064641/000119312518025549/d522780d497k.htm

@@ Line 1: / Line 1: @@
-The Technology Select Sector SPDR Fund strives to offer investment outcomes that are usually consistent with the price and yield performance of the Technology Select Sector Index (the "Index") before expenses(2).
+The Technology Select Sector SPDR Fund (the <nowiki>''</nowiki>fund")strives to offer investment outcomes that are usually consistent with the price and yield performance of the Technology Select Sector Index (the "Index") before expenses(2).
 In seeking to track the performance of the index, the fund employs a replication strategy, which means that the fund typically invests in substantially all of the securities represented in the index in approximately the same proportions as the index. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The fund is non-diversified.
@@ Line 6: / Line 6: @@
 === ABOUT ===
-The companies in each Select Sector Index are chosen from a numerus number  of companies defined by the Standard & Poor's 500 Composite Stock® Index ("S&P 500®") based on general industry classification. All of the companies in the S&P 500 are represented by the eleven Select Sector Indexes (each a "Select Sector Index") on which the Select Sector SPDR Funds are based (2).
+Under normal market conditions, the Fund normally invests practically all of its total assets, but at least 95%, in the securities that comprise the Index. Prior to any major change in this 95% investing policy, the Fund will provide shareholders with at least 60 days' notice. Furthermore, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by the Fund's investment adviser, SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser").
+The Index includes securities from the following industries: technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; information technology services; electronic equipment, instruments, and components; and wireless telecommunication services. The Index is one of eleven Select Sector Indexes created and maintained using the following criteria:
+# Each of the Index's component shares is a constituent company of the S&P 500 Index.
+# S&P Dow Jones Indices LLC ("S&P DJI") calculates the Index based on methodology proprietary to S&P DJI and BofA Merrill Lynch Research ("BofA Merrill Lynch") (S&P DJI and BofA Merrill Lynch, collectively, the "Index Provider"), using a "modified market capitalization" methodology, which means that modifications to the market capitalization weights of single stock concentrations may be made to conform to the requirements of the Internal Revenue Code of The Index contained 72 stocks as of November 30, 2017.
 === DISCLOSURE ABOUT DISRIBUTIONS ===
-Dividends from stocks and interest from debt instruments are the two main sources of income for each Select Sector SPDR. On a quarterly basis, "incjjome dividend distributions" are made to shareholders from these sums, after expenses. Every time a Select Sector SPDR sells shares, capital gains or losses are also realized. Annual "capital gain distributions" are made to shareholders in the form of net long-term capital gains. In general, whether you take distributions in cash or reinvest them in a Select Sector SPDR, they are taxed as federal income when they are paid. Distributions made from a Select Sector SPDR's earnings and profits are subject to ordinary income tax.Distributions of net long-term capital gains in excess of short-term capital losses are taxable as long-term capital gains, regardless of how long you have owned the shares.Tax information is provided in broad strokes. You should discuss the tax implications of investing in a Select Sector SPDR with your personal tax counsel (1).
+Dividends from stocks and interest from debt instruments are the two main sources of income for each Select Sector SPDR. On a quarterly basis, "income dividend distributions" are made to shareholders from these sums, after expenses. Every time a Select Sector SPDR sells shares, capital gains or losses are also realized. Annual "capital gain distributions" are made to shareholders in the form of net long-term capital gains. In general, whether you take distributions in cash or reinvest them in a Select Sector SPDR, they are taxed as federal income when they are paid. Distributions made from a Select Sector SPDR's earnings and profits are subject to ordinary income tax.Distributions of net long-term capital gains in excess of short-term capital losses are taxable as long-term capital gains, regardless of how long you have owned the shares.Tax information is provided in broad strokes. You should discuss the tax implications of investing in a Select Sector SPDR with your personal tax counsel (1).
 === FUND INFORMATION ===
@@ Line 51: / Line 56: @@
 |}
 (2)
+'''RISKS'''
+Select sector SPDR also may be unfavourable by the performace of specific company in the technology sector . Investing in the Fund carries inherent risks, just like any other investment. Fund shares will fluctuate in value, and you may lose money if you invest in the Fund. The Federal Deposit Insurance Corporation or any other government entity does not insure or guarantee investments in the Fund.
+'''INDEX TRACKING RISK'''
+* The Fund is managed using an indexing investment approach, which seeks to replicate the performance of an unmanaged index of securities, regardless of the Index's current or future performance or the actual securities that comprise the Index.
+* an actively managed fund often tries to exceed a benchmark index. As a result, the Fund's performance may be less favorable than that of an active investment strategy-managed portfolio
+* The Index's structure and composition will impact its performance, volatility, and risk, as well as the Fund's performance, volatility, and risk. While the Adviser attempts to track the Index's performance
+* The Fund incurs a number of operating expenditures that are not applicable to the Index, as well as charges associated with buying and selling assets. Furthermore, the Fund may not be completely invested at times, typically as a result of cash flows into or out of the Fund or cash reserves kept by the Fund to cover redemptions.
+'''TECHNOLOGY SECTOR RISK'''
+* the Fund will be more affected by the performance of the technology sector than a more diversified fund
+* Market or economic issues affecting technology companies and businesses that rely largely on technical breakthroughs may have a significant impact on the Fund's investments.
+* Stocks of technology companies and companies that rely heavily on technology are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and domestic and international competition, including competition from foreign competitors with lower production costs.
 === '''REFERENCES''' ===
@@ Line 59: / Line 82: @@
 https://www.etf.com/XLK
+https://www.sectorspdr.com./
+https://www.sectorspdr.com./api/documents/by-name/Annual%20Report
+https://www.sec.gov/Archives/edgar/data/1064641/000119312518025549/d522780d497k.htm