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I was looking at one of the ETFs I own, the iShares North American Technology Software Fund (IGV) and noticed something missing. It doesn't include Apple (AAPL). Nope, not one share.

And I kind of like it that way.

First of all, I already own Apple, so I don't need more. And the IGV fund concentrates its holdings in more software-oriented companies, such as Salesforce.com (CRM), Oracle (ORCL) and Microsoft (MSFT).

One could argue that Apple does indeed sell software, but the way the index is constructed, AAPL doesn't meet the criteria. Neither does IBM (IBM) apparently (which I also own).

Here's a comparison of some of the most widely held technology ETFs. These include:

  • North American Technology Software Fund
    NAV $570 million / Expense ratio 0.48%
  • Nasdaq-100 ETF (QQQ)
    NAV $34.7 billion / Expense ratio 0.20%
  • Vanguard Information Tech ETF (VGT)
    NAV $2.4 billion / Expense ratio 0.19%
  • Dow Jones Technology Fund (IYW)
    NAV $1.7 billion / Expense ratio 0.47%
  • SPDR Technology sector ETF (XLK)
    NAV $9.3 billion / Expense ratio 0.18%

Technically, QQQ isn't a tech ETF, but the sector does account for about 70% of the fund.

This table shows IGV's top 15 holdings, compared to the same weighting in the other 4 ETFs. I also included Apple's allocation for the funds that include it.

I like this fund because it offers a much more concentrated exposure to the non-AAPL tech stocks I'm bullish on, including Oracle, Microsoft, and Salesforce.

Apple, of course, has been a great investment over the past few years, so IGV isn't exactly delivering stellar returns in comparison. Here's a look at the return for these ETFs over several time frames.

And here's a similar view of a few of the stocks

Dragging the IGV fund down? Oracle and Adobe (ADBE) haven't helped, but CRM has done fairly well. And I expect Microsoft's performance to improve.

Microsoft, Oracle, and Salesforce account for almost 25% of IGV's holdings. So if you're interested in these stocks - and already own Apple stock or as part of another ETF - this fund might make a lot of sense.

Disclosure: I am long IGV, AAPL, ORCL, IBM.

Source: Why I Really Like My 'No Apple' Tech ETF