XLK, XLE and XLI Top Sector SPDRs in H1 2026

The Technology Select Sector SPDR Fund (XLK) rose 33% year-to-date through June 2026, the Energy Select Sector SPDR Fund (XLE) gained 21%, and the Industrial Select Sector SPDR Fund (XLI) advanced 20% in the first half of the year.

XLK’s 33% gain came despite a pullback in June. Investors reduced exposure to large-cap growth in June amid concern about the timing of revenue from large AI infrastructure projects and higher component costs for memory and storage. A stronger-than-expected May jobs report and persistent inflation led the Federal Reserve to signal a hawkish stance, contributing to downward pressure on growth-oriented tech stocks in June.

Semiconductor shares were major contributors to XLK’s performance. Micron Technology, about 5.52% of the fund, gained more than 290% for the period. Nvidia, with a 14.66% weight, returned roughly 5.4% year-to-date. Broadcom, at about 5.48% of the fund, returned about 7.08%. Apple, the largest XLK holding at roughly 12.85%, rose about 6.28%. Microsoft, about 8.50% of the fund, declined about 22.99% after a steep June selloff tied to investor concern over its AI spending.

XLE’s 21% gain was concentrated in the first quarter, when the sector climbed an estimated near 37% as supply disruptions and geopolitical tensions in the Middle East produced price premiums. Performance moderated in the second quarter as regional tensions eased. Exxon Mobil and Chevron, the two largest XLE holdings at roughly 22.40% and 16.24% of the fund, returned about 13.85% and 8.93%, respectively. ConocoPhillips, at about 6.54%, rose about 11.06%. The Williams Companies, a midstream holding at about 5.04%, gained about 23.67% on higher natural gas volumes and pipeline activity linked to data center demand. Valero Energy, near 4.71% of the fund, rose about 59.53% after Gulf Coast refineries exported finished fuels at elevated margins during regional disruptions.

XLI’s 20% advance was linked to ongoing data center construction, equipment upgrades driven by higher commodity prices, and continued aerospace and defense spending. Caterpillar, the largest XLI holding at about 8.37%, returned roughly 84.37%. GE Verona, at about 5.21%, gained about 77.69%. GE Aerospace, about 6.86% of the fund, rose about 20.66%. RTX and Boeing, smaller weights at roughly 4.44% and 2.98%, returned about 3.40% and -0.77%, respectively.

In June, investors rotated toward value stocks after locking in gains in large-cap tech earlier in the quarter. Early-quarter rallies, supply disruptions that created energy price premiums, strong gains among semiconductor suppliers and increased demand for data center infrastructure were among the factors recorded across these sector SPDRs in the first half of 2026.