Triple-digit stock prices can limit the amount of exposure an investor would like when constructing a well-rounded portfolio. However, with exchange traded funds, investors can take on a basket of expensive, yet favorably positioned large-cap companies.
There are a number of ETFs that include triple-digit stock components. Benzinga’s ETF Professor at Minyanville lists out five such ETFs that provide exposure to well-known large-cap stocks at a reasonable price:
- SPDR Technology Select Sector Fund ETF (NYSEArca: XLK). The fund’s top holding is Apple (NasdaqGS: AAPL) at 17.8%, but it also holds International Business Machines (NYSE: IBM) at 8.22% and Google (NasdaqGS: GOOG) at 5.3%. [Technology ETFs with Big Positions in Apple]
- SPDR Financial Select Sector Fund ETF (NYSEArca: XLF). XLF includes top financial names like Goldman Sachs (NYSE: GS) and Simon Property Group (NYSE: SPG) in its top ten holdings. BlackRock (NYSE: BLK) also makes up about 1% of the fund. [Financial Sector ETFs See Bullish Technical Sign]
- Global X China Energy ETF (NYSEArca: CHIE). This energy fund tracks China’s energy producers, including the country’s three largest oil companies, PetroChina (NYSE: PTR), Sinopec (NYSE: SNP) and Cnooc (NYSE: CEO). These three companies make up almost a third of CHIE’s overall portfolio.
- iShares S&P 500 Growth Index Fund ETF (NYSEArca: IVW). The ETF offers exposure to over 30 companies that are trading in the triple-digit range, along with a handful of other securities that could trade in the low $100s on a good day.
- First Trust ISE Cloud Computing Index Fund ETF (NYSEArca: SKYY). SKYY tracks companies that are involved in the relatively new cloud computing tech industry. The fund holds nine triple-digit stocks, including familiar names like Netflix (NasdaqGS: NFLX), Equinix (NasdaqGS: EQIX), Apple, Google and Amazon (NasdaqGS: AMZN).
For more information on the U.S. stock market, visit our S&P 500 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.