Dallas, Texas 10/25/2013 (Financialstrend) – Technology SPDR (ETF) (NYSEARCA:XLK) is an exchange traded fund is now know by its new name Sector SPDR Trust SBI Interest. Its investment philosophy is based on earning returns which are in line with or over achieve when compared against results which are returned by the “technology select sector companies” as identified by S&P 500 index. The fund has retained the services of SSgA Funds Management, Inc as its investment adviser.
It has paid a dividend of $0.63 per share over the past 12 months which translates to 1.89% dividend yield for the past year. During the past 12 months it has managed to post growth of 15% and has been trading at $33.3 as of October 24. At current valuations, the stock is trading at just 0.8% below its 52 week high valuation. The stock over the past week has posted a 1.78% increase and by 5.59% in the past 90 days. The fund has been under performing in comparison to the tech index and the various big cap technology companies which make up the index. Considering the huge surge that companies like Google, Facebook, Apple have posted over the past few quarters the exchange traded fund stands out for its tepid performance.
In the recent past it has also seen more competition enter the market and try to fret away some of its unhappy share holders. On October 22, Fidelity Mutual announced that it has launched 10 new sector based ETF of which one of the key one is Fidelity MSCI Information Technology Index. BlackRock has been retained one of the advisers by Fidelity.
In another addition to the competition list is a new Robotics related exchange traded fund. The formal launch happened on October 22, under the official ticker “Robo-Stox Global Robotics and Automation Index ETF (ROBO)”.