Apple-Samsung Battle Felt in ETFs
August 30th, 2012 at 3:23pm by Tom Lydon
The verdict for Samsung to pay Apple (NasdaqGS: APPL) over $1 billion in damages in a recent patent trial has not taken the exchange traded fund iShares MSCI South Korea (NYSEArca:EWY) down far. The $2.63 billion fund is one of the largest single-country funds trading and allocates about 21.6% of holdings to Samsung.
“The $1.05 billion ruling was shy of the $2.5 billion sought by Apple when it charged that Samsung took three months to rip off features of the iPhone that took years to develop. Samsung, which plans to appeal the decision, has argued that Apple is using courts to avoid competing in the marketplace,” The WSJ said. [Three Emerging Markets ETFs on an Upswing]
EWJ has lost only about 1% since the verdict, however, tech-focused funds holding Apple have moved more on the news. Analysts say that the South Korean company stands the least chance of being affected during this lawsuit, report Olly Ludwig and Devon Layne for Index Universe. [South Korea ETF: Will it Rally on Samsung Deal?]
For example, the PowerShares QQQ Trust (NasdaqGM: QQQ) holds 18.8% in Apple and gained about 0.5% on the news.
“Apple has more to lose, as the company holds the top spot in the eye of the public. The same rings true in the case of ETFs. Samsung is twice as big as any other holding in EWY, while Apple is three times larger than any other holding in IYW,” Scott Freeze of Street One Financial said, referring to the iShares Dow Jones U.S. Technology Index Fund (NYSEArca: IYW).
Other ETFs with heavy weightings in Samsung is the iShares MSCI All-Country Asia Information Technology Index Fund (NYSEArca: AAIT), with 17.6 % in the Korean company. The fund gained 0.61%. The iShares S&P Asia 50 Index Fund (NYSEArca: AIA) lost 1.43% and has a 15.8 % in Samsung. [Best Emerging Market ETFs]
iShares MSCI South Korea
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.