Apple's Stock Surge Powers Gains for Some Tech-Focused ETFs

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As 1 of nan world's astir valuable companies, Apple is simply a ample constituent banal for galore celebrated ETFs

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Key Takeaways

  • With a marketplace capitalization of much than $3 trillion, Apple is among nan astir valuable publically traded companies successful nan world—and nan largest holding successful immoderate of nan astir celebrated ETFs.
  • A 6% surge successful Apple's banal value successful intraday trading Tuesday, aft its Worldwide Developer Conference, has been a large driver for galore of nan largest exchange-traded costs (ETFs).
  • Technology-focused ETFs were nan biggest beneficiaries of Apple's value gains Tuesday.
  • Investor enthusiasm for Apple's recently announced AI devices has sparked hopes for an iPhone income revival.

Apple (AAPL) shares surged 6% connected Tuesday, starring to gains successful immoderate of nan largest exchange-traded costs (ETFs) pinch dense vulnerability to nan tech giant.

Apple hosted its World Wide Developer Conference 2024 (WWDC24) connected Monday and announced a caller "Apple Intelligence" system, nan company's long-awaited move into generative artificial intelligence. The latest operating strategy upgrade will beryllium 1 of nan largest for Apple successful years and will bring AI image creation, "Genmoji" civilization emojis, matter summarization, and nan integration of nan ChatGPT tool.

Apple Rally Boosts Tech ETFs

With a market capitalization supra $3.1 trillion arsenic of Monday's marketplace close, Apple is 1 of nan astir valuable publically traded companies successful nan world. That makes it charismatic arsenic nan largest constituent banal for galore of nan biggest and astir celebrated ETFs disposable to investors.

ETFs pinch a larger vulnerability to Apple were powering up connected Tuesday. The $67 cardinal Technology Select Sector SPDR ETF (XLK) gained much than 1.5% pinch Apple arsenic its second-largest banal holding, accounting for astir 21% of its full portfolio.

Apple ranks among nan apical 3 bets for nan $17.7 cardinal iShares US Technology ETF (IYW) and nan Vanguard Information Technology ETF (VGT), comprising astir 15% of each fund's allocation starring to astir 1% gains for them connected nan day.

Apple's Effect connected Broader ETFs With Big Stake

Among broader ETFs pinch important Apple holdings, nan SPDR S&P 500 ETF Trust (SPY) has $538.5 cardinal successful assets nether guidance (AUM), and a 6.2% vulnerability to Apple shares. The ETF was down 0.09% connected nan day, weighed by losses successful nan broader market.

Apple's value gains had a much beneficial effect connected exertion shares. The Invesco QQQ Trust (QQQ), pinch $275.5 cardinal AUM, was up somewhat Tuesday, outperforming nan S&P 500. The ETF tracks nan tech-heavy Nasdaq 100, and counts an 7.98% holding successful nan iPhone maker.

Apple shares are up astir 19% complete nan past 3 months, pursuing better-than-expected fiscal second-quarter earnings. Some analysts are now hopeful that nan new AI integration tin reignite sluggish iPhone income successful coming quarters.

At 3:50 p.m. ET Tuesday, Apple had gained almost 7%, increasing to much than $206 per share.

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