Technology Select Sector SPDR Fund

XLK

Market cap $93.5B

If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on December 16, 1998.

Q3 earnings season kicks off with PEP and DAL -- sector ETFs like ITA, XLK, and XLF may gain, while CARZ, PKB and IYT could lag.

The US stock market is highly concentrated, with technology and tech-related stocks now comprising about 55% of total market cap. This concentration justifies higher valuation multiples for SPY, as tech companies have stronger margins and more stable earnings than defensive sectors. There is a stark divergence in performance between speculative tech ETFs like ARKK and CHAT versus defensive dividend ETFs such as SCHD and VNQ.

ETFs like XLK, XLU, and XLF offer diversification and sector strength to help investors brace for Q4 market uncertainty.

CNBC's Fast Money team weighs in on whether investors should favor U.S. tech or China tech heading into Q4, discussing extended valuations in U.S. names, signs of recovery in Chinese stocks, how Beijing's more supportive stance is shaping opportunities for homegrown companies, and more.

Gene Munster, Deepwater Asset Management managing partner, joins CNBC's 'Closing Bell' to discuss outlooks on tech.

Growth stocks are more diverse than you might think. Consider, for example, that Cintas, a company supplying uniforms (and more) to other companies, has average annual gains of more than 25% over the past 15 years.

Vanguard Information Technology Index Fund ETF Shares, VGT, offers broader tech exposure and less concentration risk than The Technology Select Sector SPDR® Fund ETF, XLK. VGT includes 300 stocks, providing diversification into vertical software, EDA, cybersecurity, and IT services beyond mega-cap tech leaders. XLK remains a strong, ultra-liquid option for direct exposure to top names like Nvidia, Microsoft, and Apple, but is more concentrated.

Weekly trading in large ETFs often makes it difficult to spot a clear pattern. However, the $22 billion iShares U.S. Technology ETF (IYW) was an exception last week .According to ETF Database, IYW experienced a $2.8 billion net outflow on September 17.

The article highlights the divide between affluent and paycheck-to-paycheck American consumers, emphasizing that affluent spending drives economic resilience. AI-related stocks are powering market gains, while non-AI tech and value stocks lag, masking underlying disparities in market performance. Over 40% of my dividend growth portfolio is in a single sector, justified by fading headwinds from interest rates and new supply, and improving sector fundamentals.