These days, Apple seems to be king of the hill. Here are a few reasons why you might want to consider ETFs that give a large chunk of their weight to this seemingly unstoppable tech giant.
- Apple (NASDAQ: AAPL) is dishing out smash-hit products like the iPod, iTouch, iPhone and iPad, which has helped the company shares set new highs, writes Karim Rahemtulla for Investment U.
- While Apple certainly has its competitors, the company has a very loyal – fanatical, even – customer base that will consume just about anything they produce.
- The rumors are that Verizon (NYSE: VZ) will be getting the iPhone after the holidays, and the news is already generating major buzz. But whether people head to AT&T (NYSE: T) or Verizon stores for their new phones, Apple is the winner.
- In the search for a tidbit of bearish news on Apple, Matt Phillips for The Wall Street Journal discovered that Morgan Stanley removed Apple from its “best ideas” list because the stock outperformed over the past six months.
Morgan Stanley’s Apple watcher Katy Huberty adds that there are four long-term growth drivers for Apple: smartphone market growth and expanded iPhone distribution, the tablet market opportunity, rising enterprise adoption and the Chinese consumer.
If you want to get some hefty exposure to Apple in an ETF, consider these three funds, all of which have significant weightings in the company:
- PowerShares NASDAQ-100 BuyWrite (NYSEArca: PQBW): Apple is 20.7%
- PowerShares QQQ (NASDAQ: QQQQ): Apple is 20.1%
- iShares Dow Jones US Technology (NYSEArca: IYW): Apple is 13.2%
Max Chen contributed to this article.