“The constituents for PXLG selected by Research Affiliates are selected based on book value, cash flow, sales and dividends. While information technology tends to be a large sector in most growth ETFs, PXLG’s 35% stake in the sector is 500 basis points more than in the iShares S&P 500 Growth ETF (NYSEArca: IVW). Meanwhile, consumer discretionary exposure of 11% for PXLG is 500 basis points less,” said S&P Capital IQ.
PXLG, also rated overweight by S&P Capital IQ, is home to 51 stocks and the fund deserves a mention in the Apple (NasdaqGS: AAPL) ETF conversation as the iPad maker is PXLG’s largest holding at a weight of almost 10%.
In addition to Apple, PXLG’s weight is heavily tilted toward some of the sector’s more mature, most cash-rich firms. Apple, Microsoft (NasdaqGS: MSFT), Google (NasdaqGS: GOOG) and Cisco (NasdaqGS: CSCO) have nearly $350 billion in cash combined. Those stocks combine for 26.7% of PXLG’s weight. [Time to Embrace Old Tech ETFs]
FlexShares International Quality Dividend Index Fund
Tom Lydon’s clients own shares of Apple and Microsoft.