Keep in Mind Apple's Weight in Many Popular ETFs

Apple (NasdaqGS: AAPL) shares have surged after earnings Wednesday, lifting markets toward new records with the Dow Jones Industrial Average now trading above 22,000 for the first time. Given its prodigious size, Apple also makes up a huge chunk of many technology-related exchange traded funds.

Apple Inc. has vaulted to record heights on its iPhone sales and its supporting businesses, and the progress does not seem to be slowing down. Consequently, ETF investors should keep in mind their exposure to the tech giant as they browse potential ETF investment options ahead.

Due to the market capitalization-weighting methodology found in many popular index-based ETFs, AAPL makes up a significant weight in most tech-related ETFs. For instance, among some of the most popular picks, AAPL is the largest single component of many ETFs and accounts for 15.3% of Technology Select Sector SPDR (NYSEArca: XLK), 18.0% of iShares U.S. Technology ETF (NYSEArca: IYW) and 13.9% of Vanguard Information Technology ETF (NYSEArca: VGT). The PowerShares QQQ (NasdaqGM: QQQ), which tracks the tech heavy Nasdaq-100, also includes a 12.1% tilt toward AAPL.