How Big a Slice is Apple in Your ETF? | ETF Trends

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By Todd Rosenbluth, CFRACFRA finds Apple (AAPL) attractively valued and thinks the Apple Watch and iPad unveilings, as well as the appealing bundle of services, will provide greater recurring revenue opportunities to support future growth that is not reflected in the technology company’s current share price.The two largest Information Technology ETFs, Vanguard Information Technology Index ETF (VGT) and Technology Select Sector SPDR (XLK) have more than 20% of their assets in AAPL.Despite exposure to other sectors, growth ETFs such as iShares Russell 1000 Growth ETF (IWF) and Vanguard Growth ETF (VUG) also have a double-digit percentage of assets in the tech giant.What is inside an ETF is a key driver of future returns, which is why CFRA incorporates holdings-level analysis in our ETF star ratings. Despite a strong run thus far in 2020, Apple remains attractive to CFRA. Following AAPL’s product releases, CFRA Equity Analyst Angelo Zino reiterated his Buy recommendation on AAPL. He noted that AAPL unveiled two new Apple Watch and iPad models each. The Apple Watch SE comes at a more affordable price point of $279 while AAPL keeps its Series 3 but at a low $199 price, which Zino forecasts will further help adoption for the device. …

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