Disappointing quarterly for Apple but the stock remains among the stocks of interest. Let’s find out which ETFs have the greatest weight.
Apple’s recent drop in profits and revenue in its fiscal second quarter, marking the fifth decline in the previous six periods, has sparked investor scrutiny and raised questions about the company’s future performance. With revenues of $90.75 billion, down 4.3% compared to the same period last year, and net profit down 2.2% to $23.63 billion dollars, the company has shown signs of slowing in its key businesses, particularly iPhone sales.
This deteriorating performance scenario could pose a challenge for ETFs with high exposure to Apple, which could negatively impact their holdings’ value. However, optimism expressed by CEO Tim Cook about a modest sales recovery in subsequent quarters, especially thanks to planned investments in artificial intelligence, could provide an opportunity for those looking to get in on the stock or to increase their positions.
Apple’s headwinds. Challenges and opportunities
The concentration of business issues in the iPhone, with a sales decline of 10.5% in the quarter, could directly affect ETFs that maintain a significant position in the company. However, it is essential to consider that ETFs are diversified instruments that include a number of stocks in addition to Apple, thereby reducing the specific risk linked to a single company. Therefore, while the decline in Apple’s performance may pose a challenge, it could also create opportunities for investors to take positions at depressed prices.
ETF with high exposure to Apple
Exchange Traded Funds (ETFs) that incorporate a substantial stake in Apple represent an important lens through which investors can view the impact of this market-leading company’s performance.
Among these, the Xtrackers MSCI USA Information Technology UCITS ETF 1D stands out as one of the leading investment vehicles for those seeking targeted exposure to the US technology sector. This ETF tracks the MSCI USA Information Technology 20/35 Custom Index, which includes medium to large technology companies capped at 35% for the largest entities and 20% for all others. With an extremely competitive Total Expense Ratio (TER) of just 0.12% per year, the ETF offers cost-effective and efficient access to the dynamic U.S. technology sector.
Since its launch on 12 September 2017, Xtrackers has accumulated assets under management of approximately €1,591 million, demonstrating investor confidence and interest. The ETF’s full physical replication strategy, which consists of purchasing all components of the index, ensures that investors directly benefit from the performance of included companies, including Apple. Dividends are distributed annually, offering an additional return to investors above and beyond capital gains.
Another significant ETF in this context is the iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc), which tracks the S&P 500 Capped 35/20 Information Technology Index. This index is designed to reflect the information technology sector within the broad S&P 500 market, with similar restrictions to Xtrackers in terms of maximum exposure per single entity. With a TER of 0.15% and a dividend accumulation and reinvestment policy, this ETF is aimed at investors who prefer compound growth of their investments without periodic dividend distribution.
Launched on November 20, 2015, the iShares ETF has grown impressive assets under management of approximately €5,845 million, demonstrating its popularity and the trust placed by investors. The fund’s size reflects its success and ensures liquidity and stability, qualities appreciated by both large institutional and retail investors.
Exchange Traded Funds (ETFs) that incorporate a substantial stake in Apple represent an important lens through which investors can view the impact of this market-leading company’s performance. Among these, the Xtrackers MSCI USA Information Technology UCITS ETF 1D and the iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) offer two distinct perspectives, but both are designed to offer targeted and diversified exposure to the US technology sector. While the current environment may present challenges, it is important for investors to maintain a long-term view and carefully consider opportunities or headwinds that may emerge from periods of declining prices.
| Disclaimer The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings. |
Original article published on Money.it Italy 2024-05-08 09:32:00. Original title: I migliori ETF per investire su Apple
