The tech sector is once again buoying much of the rest of the market as 2025 draws to a close. The Technology Select Sector SPDR Fund (NYSEARCA: XLK), an exchange-traded fund (ETF) with a special focus on tech names and a good overall benchmark for the sector, has returned nearly 25% year-to-date (YTD), outperforming every other one of the popular SPDR sector funds in the process.
Still, performances are dramatically uneven across the tech space, with the Magnificent Seven often responsible for driving overall gains across the sector. Focusing on these ultra-popular names poses concentration risk, though, so cautious investors might look to a broader mix of tech names instead.
