Pair the most popular smartphone with the upcoming 5G wireless technology and it could produce combustible gains for exchange-traded funds (ETFs) with heavy weightings of Apple stock. According to global investment firm JP Morgan, the iPhone maker is expected to release 5G versions of the smartphone in 2020.
“Apple is expected to release four 5G-capable iPhones in 2020, according to a forecast report from JPMorgan released Monday,” a CNN Business report noted. “According to analysts at JPMorgan, the new iPhones will likely roll out in the second half of 2020 and come in a number of sizes, including one measuring 5.4 inches, another at 6.7 inches and two at 6.1 inches. The report noted the largest iPhone will likely have sensor shift technology, allowing for better quality videos and photos when capturing motion. None of the projections detailed in the report, which are based on supply chain checks, are a certainty.”
“The report’s predictions differ a bit from other speculation, some of which suggest the 2020 iPhone lineup will resemble the 2019 models with higher-end iPhones at 5.4 and 6.7-inches and a cheaper 6.1-inch phone,” the report added.
Can the popularity of the iPhone with the latest and greatest in 5G technology give Apple shares a boost? If so, here are a few ETFs to consider with exposure to the iPhone maker:
- Technology Select Sector SPDR ETF (NYSEArca: XLK): tries to reflect the performance of the Technology Select Sector Index, which is comprised of technology and telecom sector of the S&P 500. The ETF includes companies from technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components; and wireless telecommunication services.
- Vanguard Information Technology ETF (NYSEArca: VGT): tries to reflect the performance of the MSCI US IMI Information Technology 25/50 Index, which includes information technology stocks in the MSCI US IMI 25/50.
- iShares U.S. Technology ETF (NYSEArca: IYW): reflects the performance of the Dow Jones U.S. Information Technology Index, which includes all tech sector picks in the Dow Jones U.S. Index. Due to the Dow Jones’ classification of information tech names, healthcare technology stocks may be included while payment technology stocks are excluded.
- Fidelity MSCI Information Technology Index ETF (FTEC): tries to reflect the performance of the Nasdaq-100 Technology Sector Index, which consists of companies in the Nasdaq-100 Index classified as technology according to the Industry Classification Benchmark. QTEC currently holds 34 components and more-or-less equally weights its holdings.
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