Four ETFs with Great Apple Exposure

Apple Inc. (AAPL) the technology heavyweight, posted smashing revenue of $9.87 billion and a net quarterly profit of $1.67 billion, or $1.82 per diluted share. These results compare to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, up from 34.7 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter’s revenue.

“We are thrilled to have sold more Macs and iPhones than in any previous quarter,” said Steve Jobs, Apple’s CEO. “We’ve got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010.”

John Paczkowski Reports From All Things Digital:

Apple’s (AAPL) September quarter saw, among other things, the release of Snow Leopard, the latest upgrade to its OS X operating system and the first public appearance of CEO Steve Jobs who’d been on a medical leave of absence for a liver transplant. It was also the first full period since the company launched the iPhone 3GS, in late June.

With Steve Jobs back at the realm, Apple investors continue to have something to cheer about. The PDA market continues to grow and the Apple iPhone continues to dominate and make all headlines in that market. If you like Apple but don’t want to put all your eggs in one basket, we have some tech heavy ETFs that have great Apple exposure.

Apple’s continued success will provide a boost to technology ETFs which have a dominating share in Apple. The ETFs QQQQ, QLD, IYW, and TYH all carry heavy exposure in Apple which comprise of 14.3%, 9.61%, 9.03%, and 7.91% in their portfolios respectively. Each of the ETFs offer a different perspective in trading as some provide leveraged and non-leveraged bets on the sector and Apple.

Recently, “Piper Jaffray analyst Gene Munster has raised his price target for Apple stock from $186 to $235,” MacNN Reports. Of course if you believe Apple’s lofty levels and extreme price targets are a bit overdone, then there are inverse ETFs to bet against Apple and its sector.

Here’s a detailed look at the technology ETFs mentioned and what each one holds below:

The investment (QQQQ) is an unit investment trust designed to correspond generally to the performance, before fees and expenses, of the Nasdaq-100 index. The fund holds all the stocks in the Nasdaq-100 index, which consists of the largest non-financial securities listed on the Nasdaq Stock Market. The fund issues and redeems shares of Nasdaq-100 Index Tracking Stock in multiples of 50,000 in exchange for the stocks in the Nasdaq-100 and cash.

TOP 10 HOLDINGS (QQQQ)( 47.38% OF TOTAL ASSETS)

Company Symbol % Assets Apple Inc. (AAPL) 14.3 Cisco Systems, Inc. (CSCO) 3.04 Gilead Sciences, Inc. (GILD) 2.75 Google Inc. (GOOG) 4.63 Intel Corporation (INTC) 2.71 Microsoft Corporation (MSFT) 5.16 Oracle Corporation (ORCL) 3.1 QUALCOMM Incorporated (QCOM) 6.33 Research In Motion Limited (RIMM) 2.83 Teva Pharmaceutical Industries (TEVA) 2.53

The investment (QLD) seeks daily investment results, before fees and expenses, which correspond to twice the daily performance of the NASDAQ 100 Index. The fund normally invests 80% of assets in financial instruments with economic characteristics that should be twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective. The fund is nondiversified.

TOP 10 HOLDINGS (QLD) ( 72.63% OF TOTAL ASSETS)

Company Symbol % Assets Apple Inc. (AAPL) 11.65 Cisco Systems, Inc. (CSCO) 2.48 Gilead Sciences, Inc. (GILD) 2.24 Google Inc. (GOOG) 3.77 Microsoft Corporation (MSFT) 4.2 Nasdaq 100 18/09/09 N/A 23.12 Nasdaq100 Swaps N/A 15.18 Oracle Corporation (ORCL) 2.53 QUALCOMM Incorporated (QCOM) 5.16 Research In Motion Limited (RIMM) 2.3

The investment (IYW) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Technology Index. The fund generally invests at least 90% of assets in securities of the underlying index and depositary receipts representing securities of the underlying index. It may invest the remainder of assets in securities not included in its underlying index but which BGFA believes will help the fund track underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA. The fund is nondiversified.

TOP 10 HOLDINGS (IYW) ( 64.16% OF TOTAL ASSETS)

Company Symbol % Assets Apple Inc. (AAPL) 9.03 Cisco Systems, Inc. (CSCO) 7.53 E M C CP (EMC) 1.96 Google Inc. (GOOG) 6.54 HEWLETT PACKARD CO (HPQ) 4.84 Intel Corporation (INTC) 5.98 INTL BUSINESS MACH (IBM) 8.8 Microsoft Corporation (MSFT) 11.33 Oracle Corporation (ORCL) 4.2 QUALCOMM Incorporated (QCOM) 3.95

The investment (TYH) seeks to replicate, net of expenses, 300% of the daily performance of the Russell 1000 Technology Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified.

TOP 10 HOLDINGS (TYH) ( 288.72% OF TOTAL ASSETS)

Company Symbol % Assets Aim S/T Inves. Trst Treas N/A 9.03 Apple Inc. (AAPL) 7.91 Cisco Systems, Inc. (CSCO) 6.5 Google Inc. (GOOG) 5.68 HEWLETT PACKARD CO (HPQ) 5.4 Intel Corporation (INTC) 5.23 INTL BUSINESS MACH (IBM) 7.56 Microsoft Corporation (MSFT) 9.55 Oracle Corporation (ORCL) 3.81 Russ 1000 Tech Index Swap N/A 228.05

Disclosure: No Positions

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[rayman:]

IWF

Oct 21 06:07 AM