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Apple's Fall iPhone Event Puts Focus on These ETFs

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Apple Inc. (AAPL - Free Report) is expected to launch three new versions of iPhone, a new Apple Watch, a revamped iPad Pro and many other products, according to various reports, in its much-awaited annual fall iPhone event.

The new iPhone lineup includes iPhone XS, iPhone XS Max or Plus and iPhone XR. The former two will likely have OLED display with screen sizes of 5.8-inch and 6.5-inch respectively while iPhone XC will come with a 6.1-inch screen and a cheaper LCD display in seven different colors. These devices will run on Apple A12 chip, and be based on iOS 12 (read:  Trump's Tariff Threat to Hurt Apple: ETFs in Focus).

Meanwhile, a new fourth-generation Apple Watch model, which seems to be bigger, will possess a similar design as that of Apple Watch 3. As iPad is struggling to garner investors’ interest, Apple is expected to unveil iPad Pro 12.9 -- the first-ever iPad model with Face ID.

Other Apple products might include a new HomePod mini smart speaker, updates to its wireless charging pad AirPower, new MacBook Air with Retina Display, new iMacs and a new Mac Mini, and new AirPods with noise-cancellation, water resistance and wireless charging facilities. The company might also provide some insights to the possible TV streaming service it is expected to debut next year.

Analysts Estimates Revision Ahead of Launch Event  

The stock saw no earnings estimate revision over the past 30 days for the current fiscal year (ending September 2018), while its estimates have gone up by couple of cents for the next fiscal year. Apple is expected to post substantial earnings growth of 12.9% and revenue growth of 3.34% for the next fiscal.

The stock has a Zacks Rank #2 (Buy) and a Momentum Score of A. Further, it belongs to a top-ranked Zacks Industry (top 1%). Apple became the first U.S. trillion-dollar company on Aug 2 having surged 32.3% so far this year and outpaced the industry returns of 28.7% (read: Spread of ETFs to Taste Apple's Trillion Dollar Market Cap).

ETFs in Focus

Given this, ETFs that are dominated by this tech titan will be in focus. Below we have highlighted funds having Apple as their top firm with a double-digit allocation each:

iShares Dow Jones US Technology ETF IYW

This ETF provides investors exposure to the broad technology stocks, with 18.4% allocation in Apple. The fund has AUM of $4.3 billion and charges 43 bps in fees and expenses. It has a Zacks Rank #2 with a Medium risk outlook.

Vanguard Information Technology ETF VGT

This fund also targets the broad tech sector with 16.1% allocation in Apple. It has amassed $22.2 billion in its asset base, while charges 10 bps in annual fees. VGT has a Zacks Rank #1 (Strong Buy) with a Medium risk outlook (read: Apple Sees an Awesome August: Play the Momentum With 3 ETFs).

Select Sector SPDR Technology ETF XLK

This most-popular technology ETF has $22.9 billion in AUM and charges 13 bps in fees per year from investors. AAPL makes up for roughly 16% of assets. It has a Zacks Rank #2 with a Medium risk outlook.

MSCI Information Technology Index ETF FTEC

With AUM of $2.3 billion, the product allocates 14.6% in Apple. The ETF has 0.08% in expense ratio and a Zacks Rank #1 with a Medium risk outlook.

iShares Morningstar Large-Cap ETF JKD

With AUM of $985.1 million, this product provides exposure to the large, established U.S. companies with Apple making up for 14.2% of assets. It charges 20 bps in fees per year and has a Zacks Rank #3 (Hold) with a Medium risk outlook.

iShares Global Tech ETF IXN

This ETF provides global exposure to electronics, computer software and hardware, and informational technology companies, with Apple making up for 13.5% share in the basket. It has $2.5 billion in AUM and charges 47 bps in fees per year (read: Tech ETFs Tumble: Should You Buy the Dip?).

Invesco QQQ QQQ

This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization, with Apple accounting for 12.5% share in the basket. It has $71 billion in AUM and charges 20 bps in fees per year. The fund has a Zacks Rank #1 with a Medium risk outlook.

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