ETFs for the World’s Most Valuable Brands

On Monday brand consultancy Interbrand released its list of the most valuable global brands and in a sign of the changing times, technology brands continue to surge in terms of brand value. Iconic Coca-Cola (NYSE: KO), the world’s largest soft-drink maker, is no longer the valuable brand, according to Interbrand. In fact, the Dow component is not even the second-most valuable brand.

Coca-Cola, a favorite holding of Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A), has dropped to the third spot among the world’s most valuable brands as Apple (NasdaqGM: AAPL) and Google (NasdaqGM: GOOG) have taken over the top-two spots. The increase in Apple’s brand value over the years is staggering.  [http://www.etftrends.com/2013/09/apple-heavy-etf-sporting-decent-technicals/]

“In 2000, Apple ranked #36 and had a brand value of USD $6.6 billion. Today, Apple’s brand value is USD $98.3 billion– almost 15 times the amount of its brand value in 2000,” according to Interbrand. 

Investors looking to gain exposure to the world’s most valuable brands can do so with ease with ETFs and with the ascent of technology and Internet names to brand value supremacy, some familiar and high-flying ETFs are home to some of the world’s most valuable brands. [Third-Quarter ETF Performance Report]

In addition to Apple and Google, International Business Machines (NYSE: IBM), Microsoft (NasdaqGM: MSFT) and Intel (NasdaqGM: INTC) rank among the 10 most valuable brands. Add those stocks up and the result is 47% of the weight of the iShares U.S. Technology ETF (NYSEArca: IYW) and almost 40% of the Technology Select Sector SPDR’s (NYSE: XLK) weight.

“Fourteen of the top 100 most valuable global brands hail from the automotive sector, including Toyota (#10, +17%), Mercedes-Benz (#11, +6%), BMW (#12, +10%), Honda (#20, +7%), Volkswagen (#34, +20%), Ford (#42, +15%), Hyundai (#43, +20%), Audi (#51, +8%), Porsche (#64, +26%), Nissan (#65, +25%), Kia (#83, +15%), Chevrolet (#89, NEW), Harley-Davidson (#96, +10%), and Ferrari (#98, +6%),” said Interbrand.