+220% in 5 years for this stock ETF

In a financial landscape characterized by changing opportunities and ever-evolving market dynamics, one particular equity ETF stands out for its extraordinary performance: an astonishing increase of +220% in just 5 years.
Through a rigorous analysis, we will explore the key elements of this ETF, analyzing the main characteristics in detail: returns, risk, volatility and costs at the center.
SPDR S&P US Technology Select Sector UCITS The SPDR S&P US Technology Select Sector UCITS ETF immediately attracts attention due to its impressive size, with assets under management of approximately €846 million.
This considerable magnitude not only suggests considerable investor confidence, but also reflects its importance within the context of financial instruments dedicated to the technology sector.
Choosing a legal ETF (Exchange Traded Fund) structure provides liquidity and transparency to the fund, offering investors an efficient vehicle to gain market exposure.
read also The 3 worst ETFs on China Replication and Synthetic Expense Indicator (TER) A distinctive feature of the ETF is its total physical replication strategy, which translates into the purchase of all components of the underlying index, in this case , the S&P Technology Select Sector.
This approach gives the fund immediate and complete exposure to the dynamics of the sector.
The ETF's total expense ratio (TER) of 0.15% per annum is an essential component of the cost-benefit analysis, revealing a strategic balance between portfolio management and profitability for investors.
Diversification and Top 10 Holdings The foundation of portfolio diversification is evident through the presence of 64 holdings, but it is in the top 10 holdings that the fund manager's key decisions emerge.
With 66.56% of the portfolio concentrated in these top 10, picks, such as Microsoft Corp and Apple Inc, reflect a targeted weighting towards industry giants.
This weighting, while high, suggests a confidence in established leaders, balancing stability with growth opportunities.
Geography and Sector One of the salient features of the ETF is its marked geographic concentration in the United States, which represents 95.92% of the portfolio.
This focus offers investors direct immersion in the vibrant and innovative US technology market.
The fund's specialization in the 100% IT sector further emphasizes its specificity and its commitment to a specific market niche, allowing investors to participate in a targeted manner in this sector.
read also This stock ETF on Poland surprised everyone Performance and Return per Risk The historical performance of the SPDR S&P US Technology Select Sector UCITS ETF is remarkable, with a return since launch of +391.86%.
This performance is supported by risk-return values of 2.48, 0.72 and 0.96 for periods of 1, 3 and 5 years, respectively.
These metrics suggest that despite industry-typical volatility, the fund has demonstrated consistent profitability over time.
Volatility and Drawdown The annual volatility of 18.79% is in line with expectations for the technology sector, highlighting the need for a robust approach to risk management while the maximum drawdown of 31.63%, both in the short and long term , testifies to one of the risk dimensions of this sector.
The ability to limit losses in adverse environments is a key element for investors seeking long-term stability.
This product may not be suitable for investors with little tolerance for sudden or prolonged negative market fluctuations.
read also A sustainable food ETF to keep track of in 2024 Historical Performance and Stock Overview The ETF has proven to shine in the long term, with an average annual return of more than 30% over the last 5 years.
While the performance overview shows short-term variation, the consistency of positive results over time gives the ETF an attractive investment profile for those evaluating management effectiveness in the context of longer market cycles.
In conclusion, the SPDR S&P US Technology Select Sector UCITS ETF emerges as a standout in the US technology sector investment landscape.
Its significant size, transparent legal structure, total physical replication strategy and solid historical performance help position this fund as an attractive choice for investors seeking exposure to the dynamic and innovative world of US technologies.
However, as always, investors should carefully evaluate their risk profile and investment objectives before making strategic decisions.
read also The podium of the new ETF issues of 2023 Disclaimer The information and considerations contained in this article must not be used as the sole and main support on the basis of which to make decisions relating to investments.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.