State Street Technology Select Sector SPDR ETF

XLK

Market cap $118B

As the Q2 earnings season kicks off, the market is widely anticipating strong results, with the technology and energy sectors expected to lead the charge. Current analyst expectations point to a robust 23.3% earnings growth for the S&P 500, which would mark the second consecutive quarter of over 20% growth, according to FactSet.

AI optical market TAM is projected to grow at 35-40% CAGR over the next two years, driven by rapid adoption in AI data centers. Lumentum, Applied Optoelectronics, and Marvell Technologies are well-positioned AI optical stocks with attractive valuations and robust growth prospects. Lumentum and Applied Optoelectronics offer compelling forward revenue multiples (6x and 9x, respectively), with accelerating revenues and margin expansion supporting bullish outlooks.

Corporate executives across the U.S. technology sector are buying their own company shares at the fastest pace on record.

Every time you open your phone, there's another headline about Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction).

Emily Roland, Co-Chief Investment Strategist at Manulife John Hancock Investment Management, delivered a two-sided message on CNBC this morning: the fundamentals underpinning technology stocks are the strongest she has ever seen, yet the concentration those returns have created is rewriting the risk profile of nearly every diversified portfolio.

Apple's $30B Broadcom chip deal highlights tech ETFs with exposure to both companies as investors seek diversified AI-related opportunities.

The tech sector has obviously been a dominant position in the equity market in the last few months. However, considering how crucial technology has been to portfolio growth as of late, some are likely wondering whether the sector still has room to grow or if it is close to reaching its peak.

Weak June jobs growth boosts hopes of a dovish Fed, putting healthcare, tech, gold and emerging market ETFs in the spotlight.

The Invesco QQQ ETF (QQQ), which many use as a proxy for the tech sector, is only 67% invested in tech stocks. The Vanguard Information Technology ETF (VGT) offers better diversification and a strong long-term track record.

The top performing sector SPDR's in 2026 were led by the State Street Technology Select Sector SPDR Fund (XLK) with gains of 33% year-to-date, followed by the State Street Energy Select Sector SPDR Fund (XLE) and the State Street Industrial Select Sector SPDR Fund (XLI), which rose 21% and 20% respectively in the first half