Over 40 years ago, not even Apple founders Steve Jobs and Steve Wozniak could fathom the heights the startup would reach since the introduction of the Apple I computer. Now the company continues its off-and-on relationship with a $1 trillion market valuation–a boon for exchange-traded funds (ETFs) with the heaviest weighting of the stock.
Most recently, the tech behemoth beat market analyst expectations by 10 cents, hitting an EPS of $2.46 for its Q2 earnings. In addition, Apple posted revenue of $58 billion and a quarterly profit of nearly $11.6 billion.
“Apple reported a clean March quarter and bullish June quarter outlook which against a backdrop of negative investor sentiment sets up for shares to move higher,” Morgan Stanley analysts said.
The analysts continue to gush over the iPhone maker despite challenges ahead for the markets.
“With a mature smartphone market, we believe Apple has locked up strong share of the premium tier market and will continue to dominate high-end smartphones sales and capture the vast majority of smartphone profits for the next several years,” Canaccord Genuity analysts said. (Reporting by Akanksha Rana in Bengaluru Editing by Saumyadeb Chakrabarty and Patrick Graham
Here are four technology ETFs with heavy weightings of Apple:
Technology Select Sector SPDR ETF (NYSEArca: XLK)–17.36 percent: 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)–15.50 percent: The First Trust Nasdaq-100 Tech Index tries to reflect the performance of the Nasdaq-100 Technology