PTF vs XLK

PTFCInvesco Dorsey Wright Technology Momentum ETF

XLKAState Street Technology Select Sector SPDR ETF

In short

PTF Launched in 2006, PTF skips the mega-cap pecking order and ranks tech stocks on relative strength instead, holding the leaders and reshuffling quarterly. Fee: 0.60%, net of a waiver through August 31, 2028.

XLK A 1998 original: XLK owns the technology slice of the S&P 500, about 70 names, for eight basis points. Big, heavily traded, and top-heavy by design, with quarterly caps the only brake on the giants at the top.

Stated mandate

PTF The fund normally invests at least 90% of its assets in securities comprising its technology-focused momentum index.

XLK The fund seeks to track the price and yield performance of the Technology Select Sector Index before expenses.

Why people hold it

• PTF The index ranks technology stocks by relative strength and holds a minimum of 30 of the strongest, so the lineup follows what is actually leading rather than what is largest.nasdaqomx.com
• Reconstituted and rebalanced every quarter (January, April, July, October), so fading names get cut on a schedule instead of lingering in the portfolio.nasdaqomx.com
• Trading since 2006, which gives this momentum screen a long public record across several tech cycles rather than a backtest.
• A plain, fully disclosed basket of roughly 40 US tech stocks, with at least 90% of assets in index names. No derivatives, no leverage, no black box on the holdings side.

• XLK Costs 0.08% a year against a roughly 0.40% median for broad tech funds, tying FTEC as the cheapest of the category's top-rated names and undercutting VGT's 0.09%.
• One of the largest and most actively traded funds in the tech aisle, so entering or exiting rarely means fighting the order book.
• Running since December 1998 and dead simple: the tech sector of the S&P 500, spanning software, semiconductors, hardware, communications equipment and IT services. Pays quarterly.ssga.com

Worth knowing

• PTF At 0.60% (0.69% gross, net of a waiver through August 31, 2028) it costs more than the typical broad tech fund; XLK charges 0.08% and VGT 0.09%.
• Roughly 40 momentum-picked names is a far narrower book than a cap-weighted tech index, and quarterly reshuffles mean the holdings can change meaningfully when leadership rotates.nasdaqomx.com
• Momentum, not income: the screen selects on price strength, and the fund has gone without paying a distribution.

• XLK Top-heavy by construction. About 70 stocks, and the index only trims its biggest weights at quarterly rebalances to stay inside fund diversification limits.spglobal.com
• The universe is S&P 500 tech only. Smaller tech companies outside the big index are out, and the Select Sector funds split the S&P 500 up, so some familiar names sit in other sector funds.ssga.com
• It is one sector with no ballast from the rest of the market, so a tech drawdown lands here in full.

Full PTF profile⁠

Full XLK profile⁠