Must-Know ETFs For The iPhone 5 Launch

Those not living in a cave by now know that Apple
AAPL
, the world's largest company by market value, will unveil the iPhone 5 on Wednesday. There is a lot riding on the newest generation of the wildly popular smartphone. J.P. Morgan economists Michael Feroli said sales of the new iPhone could jolt U.S. GDP by half a percent in
the fourth quarter
. Of course, the latest iPhone is expected to have a significant impact on shares of Apple, which are already trading within spitting distance of the all-time highs set last week. There is even speculation the new iPhone could
launch Apple shares to $800
. Whether that forecast proves accurate remains to be seen, but what is not in doubt is that following ETFs could move following the debut of the iPhone 5.
iShares Dow Jones U.S. Technology Sector Index Fund IYW
As the ETF with the largest allocation to Apple, IYW has the potential to be
sensitive to major news announcement from the company
. IYW's Apple allocation now stands at almost 24.6 percent, putting it well ahead of rival ETFs such as the Technology Select Sector SPDR
XLK
. Qualcomm
QCOM
, an Apple supplier, is another IYW top-10 holding with a weight of almost 4.2 percent. Proving that some ETFs do move in advance of Apple product debuts, IYW saw volume that was better than triple the daily average on Monday.
Global X NASDAQ 500 ETF QQQV
Considering it has an almost 16 percent weight to Apple, the Global X NASDAQ 500 ETF flies under the radar. However, it is not just that large weight to the tech juggernaut that makes QQQV worth a look come Wednesday. The Nasdaq takes its cues from Apple and with QQQV being home to nearly 500 Nasdaq stocks, this ETF is valid, if unheralded, iPhone play. QQQV is up nearly 24 percent year-to-date.
Direxion Daily Semiconductor Bear 3X Shares SOXS
This one might come as a surprise to some folks, but there are good reasons to keep an eye on SOXS over the next few days. For starters, September is usually
unkind to chip stocks
. Intel
INTC
proved as much last week. Next, in the essence of caution, it cannot be automatically assumed that the iPhone 5 will lift the sails of all of Apple's suppliers. Worse yet, if Apple sells off following the phone's launch party, chip makers with ties to the phone could easily follow suit. Bottom line: SOXS is a worthy hedge on any possible iPhone disappointments.
Guggenheim Russell Top 50 ETF XLG
The Guggenheim Russell Top 50 ETF makes the list not because of an excessive weight to Apple, though the stock is the fund's largest holding with an allocation of 9.7 percent. Rather, XLG makes the list for two other reasons. First, technology is the ETF's largest sector weight at almost 26.5 percent. Second, a potential post-debut sell-off could be a drag on the broader market, weighing large-caps of all stripes in the process. And that is all XLG is. Fifty large-cap blue-chips. For more on Apple and ETFs, click
here
.

Posted In: NewsSector ETFsBroad U.S. Equity ETFsShort IdeasSpecialty ETFsEventsAfter-Hours CenterMoversTechTrading IdeasETFs

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.