INVN vs XITK

INVNBAlger Russell Innovation ETF

XITKAState Street SPDR FactSet Innovative Technology ETF

In short

INVN Most innovation funds buy the story. INVN buys the R&D line: it ranks Russell 1000 companies by research spending against enterprise value, screens for profitability first, then equal-weights the top 50 and re-sorts every quarter.

XITK Most innovation funds pick a theme and hope. XITK lets the data pick: FactSet ranks tech and electronic-media segments by growth, keeps the top quartile, then equal-weights roughly 100 names so no single giant runs the show.

Stated mandate

INVN The fund seeks to track, before fees and expenses, the performance of the Alger Russell Innovation Index.

XITK The fund seeks to track the total return of the FactSet Innovative Technology Index before fees and expenses. Its mandate targets innovative technology-related companies with robust revenue growth and leading-edge products or services.

Why people hold it

• INVN Innovation defined by an accounting line rather than a narrative: the index picks the 50 Russell 1000 names with the highest research spending relative to enterprise value, plus other factors.prnewswire.com
• A profitability screen runs before the innovation ranking, so the basket leans toward companies funding their R&D out of a real business.
• Equal weighting at each quarterly review gives the 50th name roughly the same say as the first, so no mega-cap sits on the portfolio.prnewswire.com
• At 0.55%, the fee sits below the typical fund in its disruptive-innovation peer group.

• XITK Costs 0.45% a year, comfortably under the 0.65% median for disruptive-innovation funds, and it does it inside a plain index wrapper from a major ETF shop.
• Equal weighting at each reset gives the hundredth holding the same slot as the first, so results lean on the whole basket rather than two or three mega-caps.factset.com
• Screens segments, not slogans: only companies drawing most of their revenue from the fastest-growing corners of tech and electronic media make the cut.factset.comssga.com
• Trading since 2016, giving it a live record across several tech cycles, and it sits in the upper tier of our innovation-fund cohort review.

Worth knowing

• INVN That 0.55% is a capped rate. Gross fund expenses run higher and the waiver is contractual with an end date, so the current prospectus is the place to check it.sec.gov
• Cheaper ways to own the theme exist: KOMP charges 0.20% and XT 0.46%.
• It launched in January 2025, so the track record is short, and a 50-stock book rebuilt every quarter concentrates risk and shuffles holdings more than a broad index fund.prnewswire.com

• XITK Growth-screened tech, equal-weighted, means smaller names carry a giant's weight. Expect a rougher ride than a cap-weighted tech fund.
• Thinly traded for its category and modest in size, so bid-ask spreads can run wider than the household-name tech ETFs.
• Cheaper shelfmates exist: KOMP runs a broad new-economy basket for 0.20%.

Full INVN profile⁠

Full XITK profile⁠