What is the primary structural difference between RSPT and XLK?

RSPT uses an equal-weight approach, aiming for each holding to have similar impact regardless of market cap. In contrast, XLK is market-cap weighted, meaning larger companies like NVDA and AAPL dominate its portfolio. This structural choice influences risk and return profiles, as equal-weighting may reduce reliance on top performers but can also increase turnover and fees compared to the more conventional market-cap method used by XLK.

How do expense ratios impact long-term ETF investing?

Expense ratios represent annual operating costs deducted from fund assets. XLK charges 0.08%, while RSPT charges 0.40%. Over time, these seemingly small differences compound. For a £10,000 investment, the fee difference of 0.32% per annum significantly affects net returns compared to gross market performance. Investors should consider whether the potential benefits of equal-weighting justify the higher annual cost associated with RSPT relative to the lower-cost XLK.

Why is concentration risk relevant when comparing these funds?

Concentration risk refers to the vulnerability of a portfolio when a large portion is invested in few assets. XLK has high concentration, with its top three holdings exceeding 40% combined weight. RSPT limits this by ensuring no single top holding exceeds 2.06% of the fund. This means XLK performance may heavily depend on specific mega-cap tech stocks, whereas RSPT spreads exposure more evenly, potentially reducing the impact of any one company’s poor performance.

How do the dividend yields of RSPT and XLK compare?

RSPT offers a dividend yield of 0.23%, which is lower than XLK's 0.43%. Both yields are modest compared to broader market averages or income-focused sectors. ETFs distribute dividends from underlying holdings, typically quarterly. While XLK provides slightly more income, both funds are primarily growth-oriented. Investors seeking regular income may find these technology ETFs less suitable than dedicated income funds, despite the small variance between these two specific products.

What do the net assets indicate about liquidity for these ETFs?

Net assets reflect the total value of the fund. XLK holds $123.2 billion, offering exceptional liquidity and tight bid-ask spreads, which is advantageous for large trades. RSPT has $6.3 billion, still providing significant scale and operational stability. While XLK's larger size may offer marginally better trading conditions for institutional investors, RSPT’s asset base is substantial enough for most retail investors to enter and exit positions without major impact on pricing.

How does the inception date affect the historical track record?

XLK was established in December 1998, offering a long track record through various market cycles, including the dot-com bubble and 2008 financial crisis. RSPT launched in November 2006. While both have demonstrated durability, XLK’s longer history provides more extensive data on market-cap weighting performance in technology. RSPT offers a shorter but still significant record of equal-weighting strategies, allowing investors to observe its behaviour over the last two decades of technology sector evolution.

Which companies appear in the top holdings of both ETFs?

When analysing the top ten holdings of both funds, Palantir Technologies (PLTR) is the only shared stock. PLTR accounts for 1.76% of RSPT's portfolio and 2.39% of XLK's. The remaining top holdings are entirely distinct, reflecting their weighting methodologies. This limited overlap highlights how RSPT focuses on mid-cap or equal-weighted tech firms like Dell and Zebra, while XLK concentrates on mega-cap leaders like Nvidia and Microsoft.

How do top holdings illustrate the difference in exposure?

XLK's top holding, NVDA, comprises 15.53% of the fund, followed by AAPL at 14.16%. This creates significant exposure to AI and smartphone market leaders. Conversely, RSPT's largest holding, ZBRA, is only 2.06%. The next largest are DELL at 1.98% and CRWD at 1.89%. This comparison demonstrates that XLK is heavily influenced by the performance of a few dominant tech giants, whereas RSPT provides a more diversified basket of technology companies with similar weightings.

What sector index information is available for these funds?

For both RSPT and XLK, the specific index tracked is not available in the provided fund data. Generally, RSPT tracks an equal-weighted subset of the S&P 500 Technology sector, while XLK tracks the Technology Select Sector Index. However, without explicit index identifiers in the current dataset, investors should refer to official prospectuses for precise benchmark details to understand exactly how each fund constructs its portfolio relative to the broader technology market.

How should beginners interpret the fee difference between these ETFs?

The 0.40% fee for RSPT is notably higher than the 0.08% fee for XLK. Beginners should view this as the cost of accessing the equal-weight strategy. While XLK is cheaper to hold, it assumes higher concentration risk. Investors must weigh if they prefer paying more for reduced single-stock reliance in RSPT or accepting XLK's lower costs and greater dependence on mega-cap performance. Fee impact is cumulative, so consider it within a broader portfolio context.

Are these ETFs suitable for income-focused investors?

Neither RSPT nor XLK is typically ideal for income-focused investors. RSPT has a 0.23% yield, and XLK has 0.43%. These low distributions reflect the technology sector's emphasis on growth and reinvestment rather than dividends. While XLK offers slightly more income, both are modest. Investors seeking regular cash flow might look to dividend-focused ETFs or bond funds. These technology ETFs are generally better aligned with capital appreciation goals despite the minor yield difference.

What is the educational disclaimer regarding this comparison?

This comparison is for educational purposes only and does not constitute financial advice. Data regarding expense ratios, net assets, dividend yields, and holdings was sourced from Yahoo Finance on September 22, 2026, and may have changed. Past performance does not guarantee future results. Investors should conduct their own due diligence and consider their individual financial situation, risk tolerance, and investment goals before making any decisions regarding RSPT or XLK.

RSPT vs XLK

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare the Invesco S&P 500 Equal Weight Technology ETF (RSPT) with the Technology Sector SPDR (XLK). This page reviews their fees, holdings, dividend yields and market tracking methods to help you understand the differences between these two technology funds. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

RSPT

Metric

XLK

0.40%

Expense Ratio

0.08%

0.23%

Dividend Yield

0.43%

$6.28B

Net Assets

$123.19B

Holdings

Nov 1, 2006

Inception Date

Dec 16, 1998

–

Index Tracked

–

Technology

Fund Category

Technology

XLK costs about $32.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	RSPT	XLK
PLTRPalantir Technologies Inc.	1.76%	2.39%

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Investment Analysis

RSPT

Pros

RSPT utilizes equal-weighting, reducing reliance on any single large-cap technology stock relative to market-cap funds.
With $6.3 billion in net assets, the fund has achieved significant scale, supporting operational stability and liquidity.
Since its inception in 2006, the fund has maintained a track record of providing diversified exposure to the technology sector.

Considerations

The 0.40% expense ratio is considerably higher than the 0.08% charged by many large-cap market-weighted technology ETFs.
A 0.23% dividend yield is low, offering minimal income to investors compared to other equity sectors or bonds.
The top ten holdings all fall below 2.1%, which may dilute the impact of high-growth outliers in the sector.

XLK

Pros

XLK features a low 0.08% expense ratio, making it cost-efficient for long-term investors seeking technology sector exposure.
With $123.2 billion in net assets, the fund offers exceptional liquidity, facilitating easy entry and exit for large trades.
It provides substantial exposure to major technology companies, with top holdings including NVDA at 15.53% and AAPL at 14.16%.

Considerations

High concentration in the top three stocks creates significant single-stock risk, potentially dominating overall fund performance.
The equal-weighted alternative offers broader diversification, whereas XLK's market-cap weighting leans heavily towards a few mega-cap firms.
Despite a 0.43% yield, investors seeking regular income may find the fund's payout ratio modest compared to broader indices.

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About RSPT and XLK

RSPT (RSPT)

The Invesco S&P 500 Equal Weight Technology ETF (RSPT) is an exchange-traded fund designed to provide investors with broad exposure to the technology sector within the S&P 500. Unlike traditional index funds that weight companies by market capitalisation—often concentrating holdings in a few mega-cap firms—RSPT assigns an equal weight to each underlying holding. This approach ensures that mid-cap and large-cap technology companies all have the same influence on the fund's performance, potentially offering a more diversified view of the sector. Launched in November 2006, the fund currently holds 77 companies with net assets of approximately USD 6.28 billion. It features an expense ratio of 0.40% and a dividend yield of 0.23%. As with all technology-focused investments, RSPT can be subject to significant volatility, and values may rise or fall, so it is important for investors to understand the inherent risks.

XLK (XLK)

Technology Sector SPDR (XLK) is an exchange‑traded fund designed to give investors broad exposure to the US technology sector by tracking a technology‑focused index. It concentrates on large‑capitalisation companies across software, hardware, semiconductors and IT services, so holdings are often dominated by a handful of industry leaders. The ETF is passively managed, typically has a low expense ratio relative to actively managed funds, and can serve as a straightforward way to gain sector exposure without selecting individual stocks. Investors should be aware of sector concentration risk, sensitivity to interest‑rate changes and valuation swings, and the cyclicality of technology spending. XLK is suitable for those seeking long‑term exposure to technology trends but not as a substitute for a diversified portfolio. This is general information only and not personal advice; values can rise and fall and past performance does not predict future returns.

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RSPT vs XLK

Fund Snapshot