3 ETFs Holding Apple – IYW, XLK, FTEC
Apple’s (AAPL) stock is hot again.
After adjusting for the 7 for 1 stock split in June, AAPL is now above the pre-split high of $700 it reached in September of 2012. Today, AAPL hit a new all-time high of $101.
The stock has recouped the 45% peak to trough drop it endured in late 2012 and early 2013. And it has reclaimed its spot as the company with the largest market capitalization in the history of the world. The $602 billion market cap is $177 billion larger than the next largest US company, Exxon Mobil (XOM), that has a market cap of $424 billion.
That’s simply jaw-dropping…
The rally over the last year was triggered by Apple treating its investors better. The company has bought back $50 billion worth of stock in the last few years. And they also increased their dividend payouts.
But those investor friendly actions can only take AAPL so far.
So, what’s next for AAPL?
Right now, Apple is gearing up to enter into a new phase of growth. And it all depends on innovation.
They will introduce the iPhone 6, expand their reach into digital music through the recently acquired Beats, delve into wearable devices, and seek to tap into corporations more than ever before.
If they deliver innovative products that connect with consumers, there’s little doubt that APPL could be the first company to reach a $1trillion market cap.
Needless to say, this is one stock that deserves to be owned.
Let’s take a look at three ETFs with large holdings of AAPL that should benefit from Apple’s return to dominance…
iShares US Technology ETF (IYW)
IYW is the ETF with the largest portion of its holdings devoted to Apple. AAPL is the largest holding and makes up 18.1% of the ETF’s holdings.
At a current price of $100.95, it’s up 3.3% this week and up 31.3% over the last year. It’s currently at a new 52-week high and 33.4% above the 52-week low.
This ETF is designed to track the entire US technology sector.
IYW currently holds 141 stocks. It has an expense ratio of 0.46% and a dividend yield of 1.19%.
Technology Select Sector SPDR (XLK)
XLK also has a large portion of its holdings devoted to Apple. AAPL is the largest holding making up 15.3% of the holdings.
It holds 73 technology stocks that are in the S&P 500.
At a current price of $39.91, XLK is up 3.2% this week and 27.7% over the last year. It has an expense ratio of 0.16% and a dividend yield of 1.9%.
Fidelity MSCI Information Technology ETF (FTEC)
FTEC is another ETF that holds Apple. AAPL makes up 14.8% of the ETF’s holdings.
This ETF is relatively new. It was introduced in October of 2013. This ETF holds a larger basket of stocks. It’s made up of 417 technology stocks.
At a current price of $30.26, FTEC is up 3.2% this week and it’s up 12.3% year-to-date. It has an expense ratio of 0.12%.
Here’s the upshot…
AAPL’s stock is hot. And the company is entering into a new phase of growth. It’s time to own AAPL or an ETF like IYW, XLK, or FTEC with a large percentage of the holdings devoted to the tech giant.
Good Investing,
Corey Williams
Category: ETFs, Sector ETFs, What's Going On?
