Diversified Stock Portfolio: 5 Sector ETFs and International ETFs To Buy

2. Technology Select Sector SPDR Fund (NYSE:XLK)

5-Year Share Price Performance as of March 15: 180.46%

Next on our list of ETFs for a diversified stock portfolio is the Technology Select Sector SPDR Fund (NYSE:XLK), which aims to match the price and yield performance of the Technology Select Sector Index. It provides targeted exposure to companies involved in technology hardware, software, communications equipment, semiconductors, IT services, and electronic components. Launched on December 16, 1998, Technology Select Sector SPDR Fund (NYSE:XLK) manages assets amounting to $67.11 billion as of March 14, 2024, with a portfolio comprising 64 stocks. Its gross expense ratio, as of March 17, 2024, is 0.09%.

Microsoft Corporation (NASDAQ:MSFT) is the largest holding of the Technology Select Sector SPDR Fund (NYSE:XLK). On March 12, Microsoft Corporation (NASDAQ:MSFT) declared a $0.75 per share quarterly dividend, in-line with previous. It is to be paid on June 13 to shareholders on record as of May 16.

As per Insider Monkey’s fourth quarter database, 302 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to the previous quarter when 306 funds had invested in the stock. Bill & Melinda Gates Foundation Trust is the largest position holder in the firm, with 38.21 million shares worth $14.37 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) performed well after reporting strong earnings supported by accelerated growth from Azure. The cloud business is seeing consistent trends from optimization while AI has contributed strongly to its growth.”