The recent correction in Apple (NasdaqGS: AAPL) has led many investors to wonder if the top has been set at $644 per share as of April 10. Technology exchange traded funds are a useful tool to gain diversified exposure to the sector and capture any rally in Apple.

“Tech firms continue to benefit from long-term trends like cloud computing, mobility, and consumerization. IT spending generally has been resilient, and we expect players exposed to the aforementioned trends will do well even if the demand environment weakens. We see a lack of a clear direction of the near-term environment, and we also see generally uninspiring valuations in the tech sector, but we continue to be confident about longer-term trends favoring tech firms,” Robert Goldsborough wrote in a recent Morningstar fund analysis. [How Apple’s Huge Market Cap Impacts ETFs]

In the beginning of 2012 the technology sector was leading the charge, taking the markets higher. Apple’s rapid growth and large weightings in technology exchange traded funds helped carry the focused sector funds higher than any broad-based ETF, reports David Fry for Seeking Alpha. [Chart of the Day: Apple and Tech ETFs]

Now that the performance of AAPL has retreated, the returns on tech-focused funds may not be as stellar, but the benefits and diversification are still useful in a portfolio. [Tech ETFs with Big Positions in Apple]

Focused ETFs and the weighting of Apple:

  • PowerShares Dynamic Technology ETF (NYSEArca: PTF) AAPL 2.79%
  • SPDR Technology Select Sector ETF (NYSEArca: XLK) AAPL 18.46%
  • Vanguard Information Technology (NYSEArca: VGT)AAPL 14.50%
  • iShares Dow Jones US Technology ETF (NYSEArca: IYW) AAPL 21.46%

iShares Dow Jones US Technology ETF

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.