XITK Gets A Buy Rating For Those Wanting Small-Cap Technology Exposure
The SPDR FactSet Innovative Technology ETF offers exposure to high-growth tech and electronic media companies, aiming to capture innovation across diverse market capitalizations. XITK has $100m in AUM, 45bps fees, and no dividend payments since inception; it uses an equal-weighted index to mitigate stock-specific risk. Performance varies by time period, but XITK is recommended for those who can handle volatility; it gets a Buy rating for risk-tolerant investors, Hold for others.
XITK: Unconvincing Risk/Benefit Profile
SPDR FactSet Innovative Technology ETF holds 100 stocks of innovative companies closely related to technology. XITK primarily measures innovation based on revenue growth and has a focus on the software industry. Valuation and growth metrics are attractive relative to the sector benchmark XLK, but the sector as a whole is deeply overvalued.
