Nasdaq ETFs Key on Apple, iPhone 5

ETF Trends

Never mind what the Federal Reserve has in store for the economy — techies and technology exchange traded fund observers are waiting on the next big Apple (AAPL) iPhone launch.

Apple dominates many ETFs tracking Nasdaq-listed stocks and the tech sector. The stock is trading near an all-time high and bulls are hoping the iPhone launch will fuel another breakout.

On Sept. 12, Apple will unveil its iPhone 5 device. The iPhone series has been the best profit generating product for the company over the past year, reports Evan Niu for The Motely Fool.

The iPhone generated $74.3 billion in sales for the trailing 12-month period, or 50% of total revenue. Meanwhile, the iPad generated 21% in overall revenue and the Mac brought in 15% of total profits. [ETF Chart of the Day: Nasdaq-100]

The Apple smartphone has been up against stiff competition against the Samnsung’s Android-powered Galaxy S III, which was the top-selling smartphone in August – new iPhone purchasers were holding off in hopes of upgrading to the newer version.

The new iPhone is expected to hit shelves on Sept. 21.

ETF investors interested in taking on Apple exposure may consider tech-related ETFs, which also have a heavy weighting to the technology giant:

  • PowerShares QQQ (QQQ) : AAPL is 19.0%
  • Technology Select Sector SPDR Fund (XLK) : AAPL is 20.8%
  • Vanguard Information Technology Index Fund (VGT) : AAPL is 19.1%
  • iShares Dow Jones US Technology Sector Index Fund (IYW) : AAPL is 24.4%

For more information on the tech sector, visit our technology category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own AAPL and QQQ.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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