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ETFs for the World’s Most Valuable Brands


On Monday brand consultancy Interbrand released its list of the most valuable global brands and in a sign of the changing times, technology brands continue to surge in terms of brand value. Iconic Coca-Cola (KO), the world’s largest soft-drink maker, is no longer the valuable brand, according to Interbrand. In fact, the Dow component is not even the second-most valuable brand.

Coca-Cola, a favorite holding of Warren Buffett’s Berkshire Hathaway (BRK-A), has dropped to the third spot among the world’s most valuable brands as Apple (AAPL) and Google (GOOG) have taken over the top-two spots. The increase in Apple’s brand value over the years is staggering.  [http://www.etftrends.com/2013/09/apple-heavy-etf-sporting-decent-technicals/]

“In 2000, Apple ranked #36 and had a brand value of USD $6.6 billion. Today, Apple’s brand value is USD $98.3 billion– almost 15 times the amount of its brand value in 2000,” according to Interbrand. 

Investors looking to gain exposure to the world’s most valuable brands can do so with ease with ETFs and with the ascent of technology and Internet names to brand value supremacy, some familiar and high-flying ETFs are home to some of the world’s most valuable brands. [Third-Quarter ETF Performance Report]

In addition to Apple and Google, International Business Machines (IBM), Microsoft (MSFT) and Intel (INTC) rank among the 10 most valuable brands. Add those stocks up and the result is 47% of the weight of the iShares U.S. Technology ETF (IYW) and almost 40% of the Technology Select Sector SPDR’s (XLK) weight.

“Fourteen of the top 100 most valuable global brands hail from the automotive sector, including Toyota (#10, +17%), Mercedes-Benz (#11, +6%), BMW (#12, +10%), Honda (#20, +7%), Volkswagen (#34, +20%), Ford (#42, +15%), Hyundai (#43, +20%), Audi (#51, +8%), Porsche (#64, +26%), Nissan (#65, +25%), Kia (#83, +15%), Chevrolet (#89, NEW), Harley-Davidson (#96, +10%), and Ferrari (#98, +6%),” said Interbrand.

The most valuable auto brands are Toyota (TM), Mercedes and BMW, stocks that combine for nearly 21% of the First Trust NASDAQ Global Auto Index Fund’s (CARZ) weight. CARZ is up about 32% year-to-date. [Auto ETF Revs up as Sales Soar]

Facebook (FB) is the only social media that landed a spot on the Interbrand global rankings, but when factoring in Google and others, it is clear Internet stocks are ascending up the ranks of valuable brands.  In addition to Facebook and Google, Amazon (AMZN) and eBay (EBAY) are ranked among the world’s most valuable brands.  Those stocks combine for nearly a third of the PowerShares NASDAQ Internet Portfolio’s (PNQI) weight. That ETF is up 45% this year.

PowerShares NASDAQ Internet Portfolio

Tom Lydon’s clients own shares of Apple, Coca-Cola, Facebook, Google, Microsoft and Amazon.

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.