State Street Introduces Internet, Hardware ETFs
State Street Corp (NYSE: STT)’s State Street Global Advisors (SSgA), the third-largest U.S. issuer of exchange-traded funds, added to its already expansive lineup of industry sector ETFs Tuesday with the debuts of the SPDR S&P Technology Hardware ETF (SPDR Series Trust (NYSE: XTH)) and the SPDR S&P Internet ETF (SPDR Series Trust (NYSE: XWEB)).
The SPDR S&P Internet ETF follows the S&P Internet Select Industry Index. XWEB is home to 60 companies with a weighted average market capitalization of over $29 billion.
Nearly 79 percent of the new ETF's weight is allocated to Internet software and services providers while the remainder XWEB's holdings hail from the Internet retail space. None of the ETF's holdings account for more than 3.17 percent of its weight.
The new ETF's top 10 holdings include LinkedIn Corp (NYSE: LNKD), Twitter Inc (NYSE: TWTR), Yelp Inc (NYSE: YELP) and Pandora Media Inc (NYSE: P). XWEB charges 0.35 percent per year, or $35 for every $10,000 invested.
The SPDR S&P Technology Hardware ETF seeks to track the performance of the S&P Technology Hardware Select Industry Index, which represents the hardware segment of the S&P Total Market Index and comprises companies in the technology hardware, storage & peripherals sub-industry, electronic equipment and instruments sub-industry, and electronic components sub-industry,” according to SSgA.
XTH is a mix of makers of hardware storage and related products, electronic equipment and instruments and electronic components. The new ETF holds 43 stocks, with an average weighted market capitalization of $20.9 billion.
SSgA issues the largest technology ETF, the Technology SPDR (ETF) (NYSE: XLK).
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