As is the case with rival buyback ETFs, SPYB features large allocations to the consumer discretionary and technology sectors. Those sectors combined for 46.6% of the ETF’s weight as of May 20, according to SSgA data.
The nearly 21.2% weight to tech companies is noteworthy at a time when four of the five largest cash stockpiles in Corporate America, including Apple (NasdaqGS: AAPL), hail from the tech sector. At the end of last year, Apple had $178 billion in cash and marketable securities, but that number has since grown to $194 billion and the company recently said it is increasing its buyback program. Apple is just over 1% of SPYB’s weight. [ETFs for Cash Rich Firms]
SPYB’s 14.3% weight to the financial services sector is larger than that of some of its rivals. Like the tech exposure, SPYB’s financial services weight is notable because as the health of that sector increases, regulators are green-lighting increased shareholder rewards.
SPDR S&P 500 Buyback ETF
