As we approach the end of Apple’s (AAPL) March quarter, we believe it is now clear the company is running well ahead of our previous expectations and consensus, and we are raising estimates as a result. While upside is often the norm for Apple, we are still surprised by the current strength, as we believe Apple is now running well ahead of expectations in all of its key business segments during what is typically a seasonally “sloppy” quarter.
We continue to believe investors should be building on positions at current levels. The addition of the new iPad profit stream, the significant profit and cash flow contribution from the iPhone, and the accelerating cyclical recovery in the Mac business suggests consensus estimates and the stock should continue to rise. Further momentum in fundamentals and the potential for a very successful iPad launch next week should serve as the key near-term catalysts.
Apple’s CEO Steve Jobs continues to bring great leaps of innovation to the technology industry, and investors continue to reap in rewards from Apple's stock price.
Do you want exposure to Apple, but not just Apple? Consider diluting your risk through ETFs. We have detailed three tech heavy ETFs that have great Apple exposure. The three ETFs' Apple holdings comprise 9.46%, 8.35% and 8.42% of their portfolios respectively with low expense ratios. Playing Apple with ETFs gives you direct exposure to the company without having all your eggs in one basket.
The three ETFs include The iShares Dow Jones US Technology ETF (IYW), The Technology Select Sector SPDR ETF (XLK), and The iShares S&P North American Technology ETF (IGM). Here are some details on each ETF below including the top holdings in each ETF with weighting percentages. Holdings are subject to daily changes.
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 ( 65.37% OF TOTAL ASSETS)|
XLK seeks to correspond generally to the performance, before fees and expenses, of publicly traded equities of companies in the technology economic sector. The fund typically invests at least 95% of assets in companies of the technology sector. The fund’s sector includes companies from the following industries: Internet and IT services, software, computers, peripherals, electronics, semiconductor equipment, and a variety of telecommunication products. It is nondiversified.
|TOP 10 HOLDINGS ( 64.64% OF TOTAL ASSETS)|
|Cisco Systems, Inc.||(CSCO)||6.52|
|HEWLETT PACKARD CO||(HPQ)||4.62|
|INTL BUSINESS MACH||(IBM)||7.82|
IGM seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P North American Technology Sector IndexTM. The fund generally invests at least 90% assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The Fund may invest the remainder of its assets in securities not included in its underlying index, but which BGFA believes will help the fund track its underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents. The fund is nondiversified.
|TOP 10 HOLDINGS ( 58.84% OF TOTAL ASSETS)|
Disclosure: No positions