State Street Launches Four New Sector ETFs With Uncapped Market-Cap Weighting
State Street Investment Management has launched four new S&P 500 Market Sector SPDR ETFs designed to track market-cap-weighted sector indexes without individual company weight caps.
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State Street Investment Management announced on October 14, 2026, the launch of four new State Street® S&P 500® Market Sector SPDR® ETFs. The new funds include Consumer Discretionary (XLYM), Consumer Staples (XLPM), Energy (XLEM), and Technology (XLKM).
Unlike traditional Select Sector SPDR ETFs, these new funds are designed to track market-capitalization-weighted S&P 500 sector indexes, which do not cap individual company weights. This allows them to reflect the full weight of the largest companies in each sector, such as Nvidia's higher weight in the technology sector compared to its capped weight in XLK.
State Street stated that this move addresses the needs of investors, model portfolio builders, and asset allocators seeking exposures that more closely align with market-cap-weighted sector benchmarks. The new ETFs primarily allocate assets to the corresponding Select Sector SPDR ETFs, individual stocks in the underlying index, and/or derivatives.