These days, Apple seems to be king of the hill. Here are a few reasons why you might want to consider exchange traded funds (ETFs) that give a large chunk of their wait 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. [Telecom ETFs for the Verizon iPhone.]
Morgan Stanely’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. [Tech ETFs: 4 Reasons They’re Going Gangbusters.]
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 QQQ (NASDAQ: QQQQ): Apple is 20.1%
- iShares Dow Jones US Technology (NYSEArca: IYW): Apple is 13.2%
For more information on the tech sector, visit our technology category.
Max Chen 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.