Netflix (NFLX) shares dropped more than 2% on Tuesday after Apple (AAPL) revealed that its subscription TV service will launch in November, will be much cheaper than Netflix, and will be free for a year for customers who buy a Mac, iPhone or Apple TV.
Apple TV+, was expected, but consumers didn’t know how much they would be paying. There were originally rumors that the subscription cost would be $9.99 a month, but Apple CEO Tim Cook said the ad-free service will cost $4.99 a month. Providing original content via subscription is the company’s latest effort to bolster its services business as iPhone sales slow.
In addition, this monthly cost includes family access for up to 6 family members, and you’ll even get a whole year free of Apple TV Plus if you purchase a new iPhone, iPad, or Apple TV.
People will have three months after activating their new device to take advantage of the offer, according to a press release. If the device is purchased and activated before Apple TV Plus launches, customers will have three months starting November 1st.
Investors looking for Apple plays using ETFs could look at ETFs with heavy servings of Apple stock including:
- Technology Select Sector SPDR ETF (NYSEArca: XLK): The Technology Select Sector SPDR Fund 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.
- Fidelity MSCI Information Technology Index ETF (FTEC): The First Trust Nasdaq-100 Tech Index 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.
- iShares U.S. Technology ETF (NYSEArca: IYW): The iShares U.S. Technology ETF 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.
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