State Street's new Market Sector ETF puts ExxonMobil at 29.4%

ExxonMobil comes to 29.4% of the State Street S&P 500 Energy Market Sector SPDR ETF, —XLEM, on Oct. 15, 2026, once the older fund inside it is counted. That fund, the State Street Energy Select Sector SPDR ETF, AXLE, held ExxonMobil at 23.8% that day.

State Street Investment Management listed four sector ETFs on Wednesday, Oct. 14, and Global X listed an Asia semiconductor fund the same day.

The older Select Sector funds track indexes that cap a company's weight. S&P Dow Jones Indices caps those indexes to ensure diversification among the companies in each one. State Street said the new funds track S&P 500 sector indexes that do not cap any company and that reflect the full weight of the largest companies in each sector.

The four State Street funds have an inception date of Oct. 13. On Oct. 15, —XLEM held AXLE as 84.7% of assets.

The State Street S&P 500 Technology Market Sector SPDR ETF, —XLKM, held the State Street Technology Select Sector SPDR ETF, AXLK, as 66.3%. The State Street S&P 500 Consumer Staples Market Sector SPDR ETF, —XLPM, held the State Street Consumer Staples Select Sector SPDR ETF, AXLP, as 51.8%.

Counted through the old fund, ExxonMobil is 29.4%

State Street says each fund holds the older ETF and then adds stocks, so it can track the uncapped index and stay inside the diversification limits for a regulated investment company. Derivatives are allowed. On Oct. 15 the energy and technology funds held the older ETF and stocks, and the staples fund's biggest positions were that mix as well.

ExxonMobil was 9.3% of —XLEM directly, and 23.8% of AXLE. The 23.8% applies only inside the old fund, so the ExxonMobil in that 84.7% stake is just over 20 percentage points of the new fund. With the 9.3% held directly, the company was 29.4% of the new fund.

Walmart was 10.8% of —XLPM directly and 10.9% of AXLP. Counted through the 51.8% stake, Walmart was 16.5% of the new fund.

Nvidia was 10.6% of —XLKM directly and 15.4% of AXLK. Counted through the 66.3% stake, Nvidia was 20.8% of the new fund.

The fourth fund, the State Street S&P 500 Consumer Discretionary Market Sector SPDR ETF, —XLYM, did not stop at the older ETF and stocks. On Oct. 15 it held the State Street Consumer Discretionary Select Sector SPDR ETF, AXLY, at 64.0%, Amazon at 17.7%, a government money-market fund at 10.5% and Tesla at 6.2%, plus a small Amazon options position.

Amazon is 23.3% of AXLY. That stake contributes 14.9 percentage points. With the 17.7% held directly, Amazon was 32.6% of —XLYM.

The new funds are still at seed size. As of Oct. 16, —XLEM and —XLPM each had $510,000, and —XLKM and —XLYM each had $490,000. AXLE, AXLK and AXLP held $44.2 billion, $125.6 billion and $14.3 billion.

State Street lists a 0.12% gross expense ratio on each new fund, which it describes as the total annual operating expense ratio in the prospectus.

Global X's top 10 had three stocks above 10%

Global X listed the Global X Asia Semiconductor ETF, ACHP, on Nasdaq the same day. Global X said it tracks the Global X Asia Semiconductor Index, up to 25 companies in chip manufacturing, design, related intellectual property and software enablement, across 10 Asian markets including Taiwan, South Korea, Japan, China, Hong Kong and Southeast Asia.

The gross expense ratio is 0.50%, from a summary prospectus dated Oct. 8. The ticker is also used by a different Global X Asia semiconductor fund in Toronto, priced in Canadian dollars.

That prospectus says that at each rebalance, no stock's weight will exceed 10%. Those rebalances fall in February, May, August and November.

In the top 10 Global X published for the Oct. 13 close, MediaTek was 12.1%, Taiwan Semiconductor Manufacturing was 11.01% and SK Hynix was 10.25%. Those 10 holdings were 68% of the fund.

The VanEck Semiconductor ETF, ASMH, is a different bet. As of Oct. 16, Nvidia was 20.2% of ASMH, Taiwan Semiconductor was 9.4%, and the fund held $67.7 billion. The fee is 0.35%. Nvidia was not in the top 10 Global X published for ACHP.