Technology giant, Apple Inc. (AAPL), saw amazing sales for the new bigger screen iPhones thanks to buyers' growing demand for new and enhanced smartphones. This is especially true as the company sold record 10 million iPhone 6 and iPhone 6 Plus handsets in the first weekend of its availability in the retail stores.
Though the numbers were in line with the market expectation, it outpaced last year's record of 9 million sales for iPhone 5S/5C. The strong numbers are quite expected, as the company received more than four million preorders of the two devices on September 12 when it started accepting orders (read: 3 Apple ETFs for Outperformance).
This suggests incredible demand for smartphones with larger displays. The 4.7” iPhone 6 and the larger 5.5” iPhone 6 plus went on sales in retail stores on September 19, making the best-ever launch in the company's history. Unlike last year, Apple's two new iPhone models did not reach China due to delays in regulatory approvals.
Apart from the U.S., the new iPhones are currently available in Australia, Canada, France, Germany, Hong Kong, Japan, Puerto Rico, Singapore and the United Kingdom. The new models are expected to reach 20 additional countries by the end of this week. The company expects the devices to be available in 115 countries by the end of the year.
Encouraged by the larger display and longer battery life, many Android users are shifting to Apple iPhones. This move will brighten the company's revenues and profitability, which had flattened in recent quarters, and push the stock higher. Apple currently has a Zacks Rank #2 (Buy) and has a solid Zacks Industry Rank in the top 39%, suggesting continued outperformance in the coming months.
Investors looking to tap this opportunity with a much lower risk could invest in the ETF world. Though there are several options available in the market to make a bet on Apple, we have highlighted three ETFs with heavy exposure to this tech giant. These products have superior ranking methodologies with the Zacks ETF Rank of 1 or 2 (read: 4 Great Reasons to Buy These Top Ranked Tech ETFs).
iShares Dow Jones US Technology ETF (IYW)
This ETF tracks the Dow Jones US Technology Index, giving investors exposure to the broad technology space. The fund holds 144 stocks in its basket with AUM of over $4.1 billion while charging 43 bps in fees and expense. Volume is good as it exchanges nearly 391,000 shares in hand a day.
Apple occupies the top position in the basket with 17.92% of assets. The portfolio is almost evenly split between the technology hardware and equipment, and software and computer services segment. The fund has added nearly 15.5% in the year-to-date time frame and has a Zacks ETF Rank of 2 or ‘Buy' rating with a Medium risk outlook.
Select Sector SPDR Technology ETF (XLK)
The most popular technology ETF on the market, XLK follows the S&P Technology Select Sector Index. This fund has amassed about $13.9 billion in asset base and trades in heavy volume of roughly 6.9 million shares. The ETF charges 16 bps in fees per year from investors. In total, the fund holds about 71 securities in its basket. Of these firms, AAPL takes the top spot, making up roughly 15.79% of the assets (read: 3 Overlooked Funds Beating the SPDR Tech ETF (XLK) This Year).
In terms of industrial exposure, the fund is widely spread across computer hardware & storage, software & programming, IT consulting, Internet & mobile applications, fixed-line telecom services and semiconductors that make up for double-digit allocation. The fund is up about 13.1% year to date and has a Zacks ETF Rank of 1 or ‘Strong Buy' rating with a Medium risk outlook.
Vanguard Information Technology ETF (VGT)
This fund manages about $5.9 billion in its asset base and provides exposure to a large basket of 411 technology stocks by tracking the MSCI US Investable Market Information Technology 25/50 Index. The ETF has 0.14% in expense ratio while average daily volume is solid at 329,000 shares (see: all the Technology ETFs here).
Here too, AAPL is the top firm with 14.8% allocation. From a sector perspective, technology hardware & storage take the largest share at 20.4%, closely followed by Internet software & services (17.2%) and systems software (14%). VGT has added 12.5% year to date and has a Zacks ETF Rank of 1 with a Medium risk outlook.
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APPLE INC (AAPL): Free Stock Analysis Report
ISHARS-US TECH (IYW): ETF Research Reports
SPDR-TECH SELS (XLK): ETF Research Reports
VIPERS-INFO TEC (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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This suggests incredible demand for smartphones with larger displays. The 4.7” iPhone 6 and the larger 5.5” iPhone 6 plus went on sales in retail stores on September 19, making the best-ever launch in the company's history. Unlike last year, Apple's two new iPhone models did not reach China due to delays in regulatory approvals.
Apart from the U.S., the new iPhones are currently available in Australia, Canada, France, Germany, Hong Kong, Japan, Puerto Rico, Singapore and the United Kingdom. The new models are expected to reach 20 additional countries by the end of this week. The company expects the devices to be available in 115 countries by the end of the year.
Encouraged by the larger display and longer battery life, many Android users are shifting to Apple iPhones. This move will brighten the company's revenues and profitability, which had flattened in recent quarters, and push the stock higher. Apple currently has a Zacks Rank #2 (Buy) and has a solid Zacks Industry Rank in the top 39%, suggesting continued outperformance in the coming months.
Investors looking to tap this opportunity with a much lower risk could invest in the ETF world. Though there are several options available in the market to make a bet on Apple, we have highlighted three ETFs with heavy exposure to this tech giant. These products have superior ranking methodologies with the Zacks ETF Rank of 1 or 2 (read: 4 Great Reasons to Buy These Top Ranked Tech ETFs).
iShares Dow Jones US Technology ETF (IYW)
This ETF tracks the Dow Jones US Technology Index, giving investors exposure to the broad technology space. The fund holds 144 stocks in its basket with AUM of over $4.1 billion while charging 43 bps in fees and expense. Volume is good as it exchanges nearly 391,000 shares in hand a day.
Apple occupies the top position in the basket with 17.92% of assets. The portfolio is almost evenly split between the technology hardware and equipment, and software and computer services segment. The fund has added nearly 15.5% in the year-to-date time frame and has a Zacks ETF Rank of 2 or ‘Buy' rating with a Medium risk outlook.
Select Sector SPDR Technology ETF (XLK)
The most popular technology ETF on the market, XLK follows the S&P Technology Select Sector Index. This fund has amassed about $13.9 billion in asset base and trades in heavy volume of roughly 6.9 million shares. The ETF charges 16 bps in fees per year from investors. In total, the fund holds about 71 securities in its basket. Of these firms, AAPL takes the top spot, making up roughly 15.79% of the assets (read: 3 Overlooked Funds Beating the SPDR Tech ETF (XLK) This Year).
In terms of industrial exposure, the fund is widely spread across computer hardware & storage, software & programming, IT consulting, Internet & mobile applications, fixed-line telecom services and semiconductors that make up for double-digit allocation. The fund is up about 13.1% year to date and has a Zacks ETF Rank of 1 or ‘Strong Buy' rating with a Medium risk outlook.
Vanguard Information Technology ETF (VGT)
This fund manages about $5.9 billion in its asset base and provides exposure to a large basket of 411 technology stocks by tracking the MSCI US Investable Market Information Technology 25/50 Index. The ETF has 0.14% in expense ratio while average daily volume is solid at 329,000 shares (see: all the Technology ETFs here).
Here too, AAPL is the top firm with 14.8% allocation. From a sector perspective, technology hardware & storage take the largest share at 20.4%, closely followed by Internet software & services (17.2%) and systems software (14%). VGT has added 12.5% year to date and has a Zacks ETF Rank of 1 with a Medium risk outlook.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
APPLE INC (AAPL): Free Stock Analysis Report
ISHARS-US TECH (IYW): ETF Research Reports
SPDR-TECH SELS (XLK): ETF Research Reports
VIPERS-INFO TEC (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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