At a glance
XPND charges 0.65% a year, above the 0.36% average of the 8 funds most like it (the most expensive of 9). It has $39.4M in assets, the 9th largest of that group; it paid 0.09% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +1.8% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned +25.7% a year. At its worst it fell 36.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months after the low. Its ten largest positions make up 48.2% of the fund, out of 50 in all.
The short version
First Trust Expanded Technology ETF (XPND) is an actively managed fund. It uses a quantitative model to pick about 50 large U.S. technology stocks, and it also holds payment processors and communication services companies such as Mastercard, Visa and Netflix. Its 0.65% expense ratio is the highest among nine similar funds, which average 0.36%. With about $39 million in net assets as of August 31, 2026, it is also the smallest of the group.
Price history
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XPND +1.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XPND official prospectus, to Dec 31, 2024 | — | +29.61% | — | — | — | +12.48% |
| XPND price data to Oct 27, 2026 | +7.9% | +1.8% | +25.7% | +12.7% | — | +13.4% |
- Over the year to Oct 27, 2026, XPND returned +1.8%, 9th of 9 among similar funds.
- Its 5-year annualized return was +12.7%.
- Its worst full calendar year was 2022 (-29.6%); its best was 2023 (+46.1%).
- The deepest fall in its price history was 38% (Dec 27, 2021 to Oct 14, 2022), recovered by Dec 13, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.9% | — |
| 2025 | +18.8% | — |
| 2024 | +29.6% | +29.61% |
| 2023 | +46.1% | +46.27% |
| 2022 | -29.6% | -29.73% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 36.7% over that stretch · deepest drop along the way 36.7%, back to its old high 14 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.0240 | |
| 2025 | $0.0300 | -25.0% |
| 2024 | $0.0400 | 0.0% |
| 2023 | $0.0400 | -33.3% |
| 2022 | $0.0600 |
What's inside
As of Aug 31, 2026, the fund held 50 securities; the ten largest made up 48.21% of assets.
| Holding | Weight | |
|---|---|---|
| MASTERCARD INC | 5.55% | |
| PALANTIR TECHNOLOGIES INC | 5.54% | |
| VISA INC | 5.41% | |
| NVIDIA CORP | 4.87% | |
| APPLIED MATERIALS INC | 4.74% | |
| APPLE INC | 4.73% | |
| LAM RESEARCH CORP | 4.41% | |
| NETFLIX INC | 4.39% | |
| PALO ALTO NETWORKS INC | 4.31% | |
| CISCO SYSTEMS INC | 4.27% | |
| ALPHABET INC | 4.15% | |
| BROADCOM INC | 3.86% | |
| ARISTA NETWORKS INC | 3.43% | |
| TEXAS INSTRUMENTS INC | 3.30% | |
| KLA CORP | 3.19% |
By country
United States 99.86%By asset type
Stocks 99.86%By sector
Sectors of the companies held, for the 95.5% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $31K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.80%, -9.69%, +4.29%.
How it works
XPND is actively managed, but First Trust relies on a quantitative model (a rules-based, computer-driven screen) to choose stocks. The model starts with large U.S. companies listed on U.S. exchanges. It keeps only those in certain industries under the Global Industry Classification Standard (GICS), a widely used system for sorting companies into sectors. That covers information technology industries such as software, semiconductors, communications equipment and hardware. It also adds two groups from outside the tech sector: payment processors from financials, and wireless, media, entertainment and interactive media companies from communication services.
From that pool, the model scores companies on measures such as return on equity, momentum (recent price strength) and free cash flow growth. The adviser picks about 50 stocks. Each gets a weight between 0.25% and 4.50% when bought, and larger companies get larger weights. The portfolio is reconstituted and rebalanced quarterly. The managers can overweight, underweight or skip stocks the model picks. Portfolio turnover was 71%, according to the prospectus filed December 29, 2025.
Between rebalances, holdings that rise can grow past the cap. As of August 31, 2026, Mastercard, Palantir and Visa each made up 5.4% to 5.6% of assets, and the top 10 holdings made up 48%. Technology made up 71% of the fund. XPND is "non-diversified," which means it can put more money into fewer companies than a diversified fund. It held no derivatives as of that date.
What it really costs
- XPND charges 0.65% a year, versus an average of 0.36% for the similar funds below (9th of 9, cheapest first).
In a retirement portfolio
XPND is a concentrated, high-cost technology fund that has swung more than the market and pays almost no income, so it fits better as a small add-on than as a foundation.
XPND launched in June 2021, so it has no record in the 2008 or 2020 crashes. In the 2022 bear market it fell 36.7%. It took 14 months, until December 2023, to get back to its old peak. Its worst calendar year was 2022, when it lost 29.73% according to the prospectus. Its beta over the year to October 27, 2026 was 1.56, which means it tended to swing more than the market. A retiree who had to sell shares during a drop like that would lock in the losses. The fund offers almost no income: its trailing yield was 0.09% as of October 27, 2026, paid quarterly. Its 0.65% expense ratio is well above the 0.36% average for similar funds. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a tech fund that also owns payment networks like Mastercard and Visa and media names like Netflix, not only IT stocks.
- People who prefer a model-picked list of about 50 stocks, each capped near 4.5% at purchase, over pure market-cap weighting.
- Investors holding a small, higher-risk slice who can sit through drops like the 38% fall from December 2021 to October 2022.
Look elsewhere if
- Cost-focused investors: the 0.65% expense ratio is the highest of nine similar funds, compared with 0.41% for IGM and 0.08% for XLK.
- Retirees who need income from their holdings: the trailing yield was just 0.09% as of October 27, 2026.
- Investors who prefer larger funds: net assets were about $39 million as of August 31, 2026, the smallest among nine comparable funds.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XPND this fund | — | 0.65% | $39.4M | +1.8% | +25.7% |
| VEGN US Vegan Climate ETF | 46% | 0.6% | $177.6M | +24.3% | +29.2% |
| XLK Technology Select Sector SPDR Fund | 43% | 0.08% | $123.91B | +20.1% | +4.0% |
| IGM iShares Expanded Tech Sector ETF | 43% | 0.41% | $10.71B | +21.3% | +38.6% |
| TECB iShares U.S. Tech Breakthrough Multisector … | 42% | 0.3% | $462.2M | +23.7% | +31.7% |
| IYW iShares U.S. Technology ETF | 37% | 0.39% | $23.58B | +13.9% | +30.4% |
| CARK CastleArk Large Growth ETF | 37% | 0.54% | $319.2M | +4.4% | — |
| QQQ Invesco QQQ Trust Series I | 36% | 0.2% | $490.10B | +8.8% | +24.0% |
Questions investors ask
Is XPND good for retirement?
XPND works more as a small, higher-risk add-on than as a core retirement holding. It holds about 50 tech-related stocks and pays almost no income, with a trailing yield of 0.09% as of October 27, 2026. It fell 36.7% in the 2022 bear market and took 14 months, until December 2023, to recover. Its 0.65% expense ratio is also high for its category. Retirees who need to withdraw money during a downturn could end up selling at low prices.
What's the difference between XPND and IGM?
Both funds own U.S. technology stocks, and about 43% of their holdings overlap. XPND is actively managed: a quantitative model picks about 50 stocks and rebalances them quarterly. IGM, the iShares Expanded Tech Sector ETF, costs 0.41% a year compared with XPND's 0.65%. It is also much larger, with about $10.7 billion in net assets as of June 30, 2026. Over the year to October 27, 2026, IGM returned 21.3% and XPND returned 1.8%.
Does XPND pay dividends?
Yes, but very little. XPND pays dividends quarterly. Over the 12 months to October 27, 2026, it paid about $0.034 a share, a yield of 0.09%. The low payout reflects what it owns: growth-focused companies such as Palantir, Nvidia and Palo Alto Networks often reinvest their profits instead of paying large dividends. Investors who want a meaningful income stream from technology stocks may want to compare other kinds of funds.
What are XPND's top holdings?
As of August 31, 2026, XPND's largest holdings were Mastercard (5.6%), Palantir Technologies (5.5%), Visa (5.4%), Nvidia (4.9%), Applied Materials (4.7%) and Apple (4.7%). Next came Lam Research, Netflix, Palo Alto Networks and Cisco. The top 10 made up 48% of assets, spread across 50 companies. By sector, technology made up 71% of the fund, communication services 11.5% and financials 11%.
How has XPND performed since launch?
Its returns have swung widely. According to the prospectus, it lost 29.73% in 2022, then gained 46.27% in 2023 and 29.61% in 2024. That works out to an average annual return of 12.48% from its June 2021 launch through December 31, 2024. It gained 18.8% in 2025. Over the year to October 27, 2026, it returned 1.8%, the lowest of nine similar funds. Its five-year annualized return to that date was 12.7%.