Back to top

Image: Bigstock

Apple ETFs to Soar on New iPhone 13 Launch Fervor

Read MoreHide Full Article

Apple (AAPL - Free Report) ) is hitting new fresh highs ahead of its iPhone launch event on Sep 14. The technology giant is set to unveil the iPhone 13 series smartphones consisting of the iPhone 13, the iPhone 13 Pro, the iPhone 13 Pro Max and the iPhone 13 Mini, as well as other products.

Insights Into the Expected iPhones Features

Per the information leaked online, the design of the iPhone 13 line-up is expected to be the same as iPhone 12 with some minor updates like camera improvements, faster display refresh rates, and could offer satellite communications technology.

The iPhone 13 mini will sport a 5.4-inch display, whereas the iPhone 13 and iPhone 13 Pro will feature a 6.1-inch display. The top-end iPhone 13 Pro Max will feature a 6.7-inch display. While iPhone 13 will have the Face ID sensors, it is rumored that the Pro models, namely the iPhone 13 Pro and iPhone 13 Pro Max might feature Always-On Display. The company might also introduce an under-display fingerprint scanner like the Android phones (read: 5 Tech Stocks Leading the Latest Nasdaq ETF Rally).

The four iPhone 13 models will feature the latest Apple A15 chip coupled with 64GB, 128GB and 256GB of storage space. The new chip is expected to come with performance and efficiency improvements over the currently available A14 chip. The recent report from Bloomberg claimed that Apple is planning to adopt Portrait mode in video for the upcoming iPhones using the same technique with a feature that is internally dubbed as Cinematic Video. The upcoming iPhone 13 Pro and 13 Pro Max will be able to record video in the ProRes video format for the first time. This will enable higher-quality output for creative professionals.

The new models will come with 5G network support and an IP68 rating for water and dust resistance. These are expected to be available in varied color options like Matte Black, Gold, Silver, Peach and Pink. Out of the four, iPhone 13 mini seems to be the most affordable with a starting price tag of $699. The iPhone 13 will start at $799, while the iPhone 13 Pro and iPhone 13 Pro Max could begin at $999 and $1,099, respectively.

Launch of Other Products

Apart from the new iPhone models, the iPhone maker is set to introduce Apple Watch Series 7, new MacBook Pros and AirPods 3. Leaker Pine claims that the new AirPods 3 charging case will have a 20% larger battery, compared to AirPods2. Apple will also offer wireless charging as a standard feature. Apple Watches are expected to come with flat edges and bigger screen (see: all the Technology ETFs here).

Solid Fundamentals

Apple has seen rising earnings estimate revisions of 41 cents for the fiscal year (ending September 2021) over the past 60 days. This represents substantial year-over-year growth of 70.4%. Revenues are expected to grow 33.8%.

In anticipation of the new iPhones, Apple shares rallied about 7% in a month, almost double the Nasdaq Composite Index. Additionally, the stock is the second-best performing member of the FAANG group [Facebook (FB - Free Report) , Apple, Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) , Alphabet (GOOGL - Free Report) ] cohort over the past month, only lagging Netflix with 17% gains. The Apple stock is cheap, trading at a P/E ratio of 27.61 compared with other FAANG names — Amazon’s 66.61 times, Netflix’s 56.90 times, Alphabet’s 28.22 tines and Facebook’s 26.68 times (read: Tech Sector Outperforms in August: 5 Best ETFs).

Further, Apple currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B. It boasts a top-ranked Zacks industry (top 4%), suggesting strong upside for the stock over the coming days.

ETFs in Focus

As such, investors seeking to tap the bullishness in the tech titan could consider the following ETFs. These funds have Apple as their top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Select Sector SPDR Technology ETF (XLK - Free Report)

This most-popular technology ETF has $46.4 billion in AUM and charges 12 bps in fees per year from its investors. AAPL makes up for roughly 22.4% of the assets.

Vanguard Information Technology ETF (VGT - Free Report)

This fund manages about $51.3 billion in its asset base with 20.1% allocation in Apple. It has 0.10% in expense ratio.

MSCI Information Technology Index ETF (FTEC - Free Report)

With AUM of $6.5 billion, the product allocates 20.2% in Apple. The ETF has 0.08% in expense ratio (read: Top-Ranked Technology ETFs Looking Good for September).

iShares Dow Jones US Technology ETF (IYW - Free Report)

This ETF provides investors exposure to technology stocks with 18.4% allocation in Apple. The fund has AUM of $9 billion and charges 41 bps in fees and expenses.

Invesco QQQ (QQQ - Free Report)

This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. Apple accounts for 11.4% share. It has AUM of $196.1 billion and charges 20 bps in annual fees.

Published in