+ 1.73
+ 0.5%
+ 5.77
+ 1.73%
+ 5.82
+ 1.4%
+ 2.00
+ 1.21%

With One Exception, Apple ETFs Calm Ahead Of Earnings

October 26, 2015 12:34 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

On Tuesday, Apple Inc. (NASDAQ: AAPL), still the largest U.S. company by market capitalization, reports fiscal fourth-quarter earnings.


“The iPhone and Apple Watch maker will post earnings of $1.91 per share for its fiscal fourth quarter, if Estimize's consensus forecast is accurate. That would be up from $1.42 per share in the year-ago period. Wall Street is looking for EPS of $1.88 for the quarter, as well as $9.13 for the full year,” reports Benzinga


Few if any earnings reports are as widely anticipated and highly scrutinized as Apple's. Plus, the company faces heady earnings competition as rivals Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG) and Microsoft Corp. (NASDAQ: MSFT) delivered boffo results last week. Not to mention, analysts and investors will be eagerly listening to what the iPhone maker has to say about December quarter iPhone sales estimates.


With all that to consider, it is arguably surprising that Apple-heavy exchange traded funds have recently been docile, at least in terms of inflows. Perhaps the best of saying that is “Inflows?” because two of the ETFs with some of the largest weights to shares of Apple have recently seen modest outflows.


For example, the Technology Select Sector SPDR (NYSE: XLK), the larges technology sector ETF, has lost almost $56 million in assets this month. That is a small slice of XLK's $12.2 billion assets under management, but it could be seen as a commentary on what investors are expecting out of Apple's earnings reports when considering XLK allocates almost 15.8 percent of its weight to Apple. That is about 620 basis points more than XLK's weight to Microsoft, the ETF's second-largest holding. 


The Vanguard Information Technology ETF (NYSE: VGT), which has a 15.5 percent weight to shares of Apple, has lost $2.8 million. VGT, one of the least expensive tech ETFs with an annual expense ratio of 0.12 percent, features Apple as its largest holding to the tune of 640 basis points over Alphabet. 


While there have been modest departures this quarter from XLK and VGT, investors have added $26.5 million to the iShares U.S. Technology ETF (NYSE: IYW). With an Apple weight of almost 18.6 percent, the $2.68 billion IYW has more Apple exposure than any other ETF.


The one Apple that has legitimately shined in terms of fourth-quarter inflows is the PowerShares QQQ (NASDAQ: QQQ). QQQ, the NASDAQ-100 tracking ETF, has a 12.8 percent weight to Apple, putting the iPad maker ahead of Microsoft by 480 basis points in the ETF. Investors have added $1.17 billion in new asset to QQQ this quarter.


However, it can be debated whether those inflows are in anticipation of Apple's Tuesday earnings report or in reaction to the results delivered by Alphabet, Amazon and Microsoft. Those three stocks combine for almost 22 percent of QQQ's weight.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.

Related Articles

Why Apple Stock Looks Ready To Break Out In The Weeks Ahead

Apple Inc. (NASDAQ: AAPL) shares were trading higher Thursday after the Federal Reserve held its rates constant but raised its inflation expectations for the years 2021-2023. Seven Fed officials expect increases in rates in 2022, and 13 officials expect rate increases in 2023. read more

Why Apple Shares Are Moving Today

Apple Inc (NASDAQ: AAPL) shares are trading higher by 1.4% at $132 after the Federal Reserve held rates constant but raised its inflation expectations for 2021-2023. Seven Fed officials expect rate increases in 2022, while 13 expect rate increases in 2023. read more

Netflix, Apple And Facebook Lead The QQQ Higher Monday

U.S. indices were trading lower for much of the day before recovering into the close as investors await this week's Fed meeting, which is expected to begin on Tuesday. read more

Chip Shortage Bringing Record Business For Supply-Chain Intermediaries Avnet, Arrow Electronics: WSJ

The ongoing global semiconductor shortage is boosting business opportunities for semiconductor industry intermediaries, or authorized distributors, as they are able to source parts faster, according to the WSJ report. read more