Apple ETFs in Focus Post iPhone 14 Launch

·4 min read

At its annual California launch event, Apple AAPL unveiled the iPhone 14 series smartphones with four new models — iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max, as well as products like Apple Watch Series 8, Apple Watch Ultra and next-gen AirPods Pro.

Given this, investors seeking to tap the bullishness in the tech titan could consider the ETFs having the largest allocation to it. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and iShares Russell Top 200 Growth ETF IWY have Apple as the top firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Insights Into the Features of the New iPhone Models

The iPhone 14 series features battery life and camera upgrades over its predecessor. Its four new models are between 6.1 and 6.7 inches in length, meaning they have larger screens than the iPhone 13 and can last all day on a single charge. iPhone 14 and 14 Plus feature an upgraded 12MP camera, while the Pro and Pro Max versions have a 48MP camera.

Out of the four, the 6.1-inch iPhone 14 is the most affordable, with a price tag of $799. The 6.7-inch iPhone 14 Plus starts at $899, while the iPhone 14 Pro and iPhone 14 Pro Max, which also have 6.7-inch displays, cost $999 and $1,099, respectively. The pre-order for these models starts Sep 9, while their sale will begin on Sep 16.

Meanwhile, the wireless earbuds feature a new built-in H2 chip and improved audio driver, promising improved audio capabilities. It is available for $249 and will hit stores on Sep 23. The new AirPods Pro offers better overall connectivity thanks to the H2 chip, while adding better sound via its low-distortion driver and custom amplifier (see: all the Technology ETFs here).

ETFs in Focus

Technology Select Sector SPDR Fund (XLK)

Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 76 securities in its basket, with Apple making up for a 24.9% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, semiconductors & semiconductor equipment and IT services.

Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $40 billion and an average daily volume of 6 million shares. The fund charges 10 bps in fees per year (read: 4 Sector ETFs to Bet Big on Decent U.S. Manufacturing Data).

Vanguard Information Technology ETF (VGT)

Vanguard Information Technology ETF manages about $42.7 billion in its asset base and provides exposure to 375 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 24.1% share.

Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 456,000 shares.

MSCI Information Technology Index ETF (FTEC)

MSCI Information Technology Index ETF is home to 368 technology stocks with AUM of $5.3 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 24.7% allocation.

MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 185,000 shares a day.

iShares US Technology ETF (IYW)

iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 148 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 20.1% of the assets (read: Apple Posts Record Revenues, Beats on Earnings: ETFs to Buy).

iShares Dow Jones US Technology ETF has AUM of $6.6 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges nearly 351,000 shares a day.

iShares Russell Top 200 Growth ETF (IWY)

iShares Russell Top 200 Growth ETF offers exposure to large U.S. companies that are expected to grow at an above-average rate relative to the market. It tracks the Russell Top 200 Growth Index, holding 111 stocks in its basket. Apple accounts for 15.6% of total assets. iShares Russell Top 200 Growth ETF has key holdings in information technology, consumer discretionary and healthcare with double-digit exposure each.

iShares Russell Top 200 Growth ETF has amassed $4.8 billion in its asset base and trades in an average daily volume of 360,000 shares. It has an expense ratio of 0.20%.


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Apple Inc. (AAPL) : Free Stock Analysis Report
 
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
 
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
 
iShares U.S. Technology ETF (IYW): ETF Research Reports
 
Vanguard Information Technology ETF (VGT): ETF Research Reports
 
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
 
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