The slower growth expectations in China once again came to the forefront.
“Reports last week showed that China’s economy grew at the slowest pace in nearly three decades in 2018,” said Bruce Bittles, chief investment strategist at Baird. “In order for the market to continue on an upward path, investors will need to feel more positive that trade worries are on the decline and global growth concerns are abating.”
How Tech ETFs React
As noted, Apple will be an important bellwether for the overall market–especially the tech sector and that will be largely reflected in ETFs with the largest holdings of Apple. Two exchange-traded funds (ETFs) with the largest capital Apple allocations are worth watching–Technology Select Sector SPDR ETF (NYSEArca: XLK) and Vanguard Information Technology ETF (NYSEArca: VGT).
Other ETFs with large allocations to the iPhone maker include Fidelity MSCI Information Tech ETF (NYSEArca: FTEC) and iShares US Technology ETF (NYSEArca: IYW).
Nonetheless, given the size and scope of Apple, it’s impact to the overall market is worth reiterating.
“Apple’s obviously very important to the overall market — it was a huge driver to the equity performance we saw in 2018,” Shue explained.
For more market trends, visit ETF Trends.