Top UCITS Alternatives to XLK

The Technology Select Sector SPDR Fund (XLK) tracks the Technology Select Sector Index, providing concentrated exposure to the largest hardware, software, and semiconductor companies within the S&P 500. With a low expense ratio of 0.08%, the fund offers a focused portfolio dominated by mega-cap leaders like Microsoft, Apple, and Nvidia, while explicitly excluding communication services and consumer discretionary firms such as Alphabet and Amazon.

However, for long-term Indian investors, XLK carries a critical structural risk: the US estate tax. If you hold US-domiciled assets like XLK and your holdings exceed $60,000, your estate faces US estate tax at progressive rates of up to 40% on your death. On a $500,000 holding, that works out to roughly 29% of the portfolio.

This blog gives you all the information you need about the top UCITS alternatives. These alternatives hold similar underlying assets and track the same or closely related indices, providing similar concentrated tech exposure without the risk of the US estate tax.

Table of contents

1. Why Indians are looking for UCITS alternatives to XLK
2. Popular UCITS alternatives for XLK
3. Invest in UCITS ETFs with Paasa

Why Indians are looking for UCITS alternatives to XLK

Indian investors are shifting to UCITS alternatives because they solve the tax risks and inefficiencies of US ETFs like XLK while providing very similar exposure.

• Estate Tax Protection: UCITS funds are typically domiciled in Ireland. They are not considered "US-situs" assets, meaning they are 100% exempt from US Estate Tax.
• Tax Deferral (Accumulation): Unlike XLK, which forces taxable cash dividends on you, many UCITS funds offer "Accumulating" classes that reinvest dividends automatically. This defers your Indian tax liability until you sell the fund, and converts what would have been slab-rate dividend income into capital gains.

To learn more about UCITS ETFs and why Indian investors are choosing them, read our guide on UCITS ETFs.

Popular UCITS alternatives for XLK

Here are the top four UCITS funds that serve as the best proxies for the US Technology sector.

1. SPDR S&P U.S. Technology Select Sector UCITS ETF

Source 

This is the European counterpart of XLK, managed by the same provider (State Street/SPDR). It tracks the S&P Technology Select Sector Daily Capped 35/20 Index, a capped version of the Technology Select Sector Index that XLK follows, so the weights of giants like Microsoft, Apple and Nvidia follow similar capping rules.

It is the most direct way for a UCITS investor to replicate XLK. The fund is accumulating, so it reinvests dividends rather than paying them out.

• Ticker: SXLK (LSE, USD) / ZPDT (Xetra, EUR)
• Total Expense Ratio (TER): 0.15%
• Structure: Accumulating (Reinvests dividends)
• Top Holdings: Microsoft (MSFT), Nvidia (NVDA), Apple (AAPL), Broadcom (AVGO), Advanced Micro Devices (AMD). Because of the capping rules, the weights of the top three can shift noticeably at rebalances.

2. Xtrackers MSCI USA Information Technology UCITS ETF

Source 

Unlike XLK and its direct counterparts, this fund tracks MSCI's version of the US tech sector, the MSCI USA Information Technology 20/35 Custom Index. It also caps the largest holding at 35% and the others at 20%, so it is not free of capping, but its sector definitions and rebalancing come from MSCI rather than S&P.

At 0.12% it is the cheapest fund on this list. The listed XUTC line is distributing; Xtrackers also runs an accumulating 1C share class (ISIN IE0000K7HU41) at the same 0.12% charge.

• Ticker: XUTC (LSE, USD)
• Total Expense Ratio (TER): 0.12%
• Structure: Distributing (1D share class; an accumulating 1C class also exists)
• Top Holdings: Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Broadcom (AVGO), Advanced Micro Devices (AMD).

3. iShares S&P 500 Information Technology Sector UCITS ETF

Source 

While SPDR runs the original XLK, BlackRock's iShares offers this large European alternative, which tracks the S&P 500 Capped 35/20 Information Technology Index.

With about £14.3 billion in assets (as of November 2026), it is much larger than SPDR's UCITS version (about £1.6 billion), which usually means tighter bid-ask spreads. It is accumulating, so dividends are reinvested instead of being paid out and taxed in India each year.

• Ticker: IUIT (LSE, USD) / QDVE (Xetra, EUR)
• Total Expense Ratio (TER): 0.15%
• Structure: Accumulating (Reinvests dividends)
• Top Holdings: Microsoft (MSFT), Nvidia (NVDA), Apple (AAPL), Broadcom (AVGO), Advanced Micro Devices (AMD).

4. Invesco EQQQ Nasdaq-100 UCITS ETF Acc

Source 

Many investors buy XLK simply to get general US Big Tech exposure. However, due to standard GICS sector classifications, XLK entirely excludes Amazon (classified as Consumer Discretionary) as well as Alphabet and Meta (classified as Communication Services).

If your real goal is to hold all the tech-driven giants, a Nasdaq-100 fund is often the more practical alternative. It includes some non-tech companies, but it holds all of the Magnificent Seven. The accumulating EQAC line trades on the SIX Swiss Exchange in USD; the better-known EQQQ line on the LSE is the distributing version of the same fund.

• Ticker: EQAC (SIX Swiss Exchange, USD)
• Total Expense Ratio (TER): 0.30%
• Structure: Accumulating (Reinvests dividends)
• Top Holdings: Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Broadcom (AVGO), Amazon (AMZN).

More UCITS alternatives: UCITS alternatives to QQQ and UCITS alternatives to SMH.

Related: What are UCITS ETFs? and Should you switch from US ETFs to UCITS?

Invest in UCITS ETFs with Paasa

Paasa is a global investing platform designed for Indian residents and NRIs. We provide direct access to 11 markets: the US, Canada, the UK, Germany, France, Switzerland, the Netherlands, South Korea, Japan, Hong Kong and Singapore.

This means you are not restricted to just US ETFs like XLK; you can also buy tax-efficient UCITS equivalents using Paasa.

The compliance advantage

Paasa makes global investing easy and also removes the compliance friction with a specialized layer built for Indian residents and NRIs:

• Schedule FA reporting: Exact reports you need for your Indian tax returns, eliminating the need for manual calculations.
• FEMA & LRS guidance: Guidance on FEMA regulations and LRS limits to ensure compliance.

Whether you are buying direct US stocks or investing in UCITS ETFs listed on European exchanges, Paasa provides global access with India-specific compliance and tax support.