ETFs
Rising Apple shares drive gains for some tech-focused ETFs
Key takeaways
- With a market capitalization of more than $3 trillion, Apple is among the most valuable publicly traded companies in the world and holds the largest stake in some of the most popular ETFs.
- A 6% rise in Apple’s stock price in intraday trading Tuesday, after the Worldwide Developers Conference, was a big driver for many of the largest exchange-traded funds (ETFs).
- Technology-focused ETFs were the biggest beneficiaries of Apple’s price rally on Tuesday.
- Investor enthusiasm for Apple’s recently announced AI tools has raised hopes for a recovery in iPhone sales.
Apple (AAPL) stocks jumped 6% on Tuesday, leading to gains in some of the biggest exchange-traded funds (ETFs) with heavy exposure to the tech giant.
Apple held its World Wide Developer Conference 2024 (WWDC24) on Monday and announced a new “Apple Intelligence” system, the company’s long-awaited evolution towards generative artificial intelligence. The latest operating system upgrade will be one of the biggest for Apple in years and will bring AI image creation, custom “Genmoji” emojis, text summarization and Google Cloud integration. ChatGPT Tool.
Apple Rally Boosts Tech ETFs
With a market capitalization Above $3.1 trillion at market close Monday, Apple is one of the most valuable publicly traded companies in the world. This makes it attractive as the largest component of many of the largest and most popular ETFs available to investors.
ETFs with greater exposure to Apple were surging on Tuesday. The $67 billion SPDR Technology Select Sector ETF (XLK) gained more than 1.5%, with Apple being his second largest stock holding, accounting for about 21% of his entire portfolio.
Apple ranks among top three bets for $17.7 billion iShares US Technology ETF (IYW) and the Vanguard Information Technology ETF (VGT), representing about 15% of each fund’s allocation, giving them about 1% gains on the day.
Apple’s effect on broader ETFs with high stakes
Among broader ETFs with significant stakes in Apple, the SPDR S&P 500 ETF Trust (TO SPY) has $538.5 billion assets under management (AUM), and a 6.2% exposure to Apple shares. The ETF was down 0.09% on the day, weighed down by losses across the market.
Apple’s price increases had a more beneficial effect on tech stocks. The Invesco QQQ Trust (QQQ), with $275.5 billion in assets under management, was up slightly on Tuesday, outperforming the S&P 500. The ETF tracks technology stocks Nasdaq100and holds a 7.98% stake in the iPhone maker.
Apple shares are up about 19% over the past three months, continued better than expected second quarter fiscal results. Some analysts now hope that the new integration of AI can revive sluggish iPhone sales in the coming quarters.
As of 3:50 p.m. ET Tuesday, Apple had gained nearly 7%, to over $206 per share.