Still bullish on Apple stock? 2 ETFs offer robust exposure, lower risk

Earlier this month, at his last public event, Apple (NASDAQ:) revealed a range of exciting things updates to its product portfolio. Investors were particularly keen to learn about the cheaper iPhone SE with 5G connectivity that enables faster data transfer speeds.

In January, the Cupertino, Calif.-based tech giant FY22 first-quarter results, which reported record revenue of $123.9 billion, up 11% year-over-year. Of that amount, more than $71 billion came from iPhone sales. Apple shares closed Tuesday at $155.09.

The new iPhone SE is expected to boost sales in Asia and other emerging markets, expanding the company’s global consumer base. Additionally, the tech giant hopes to build on the success of its iPhone 13 product line.

Despite Apple’s long-term growth prospects, this year’s technology rout has not spared its stock. As a result, the company has lost 12.6% of its value since the start of the year.

Today’s article features two exchange-traded funds (ETFs) that might appeal to readers interested in buying a fund whose market capitalization is the largest company in the world by market capitalization.

1. Goldman Sachs JUST Large Cap U.S. Equity ETF

  • Current price: $61.41
  • 52 week range: $56.21 – $68.92
  • Dividend yield: 1.20%
  • Spending rate: 0.20% per year

The Goldman Sachs JUST US Large Cap Equity ETF (NYSE:) provides exposure to large-cap (capitalization) US companies selected for their “fair business behavior”, as calculated by JUST Capital. This non-profit organization organization measures and ranks companies on the issues that matter most to Americans.

These topics typically range from environmental factors to worker satisfaction, consumer rights and how companies support their communities. This ranking is a reminder of the power of consumers in society.

JUST weekly chart

JUST, which has 472 stocks, tracks the diversified JUST US Large Cap Index. The fund became available in June 2018.

In terms of sector allocation, we see Information Technology (30.6%), Health Care (13.1%), Consumer Discretionary (11.4%) and Financials (11.3%). ), among others. The fund’s top 10 stocks account for nearly a third of its net assets of $264.4 million.

Apple holds the largest share of the portfolio, with 7.4%. Comes next Microsoft (NASDAQ:), Alphabet (NASDAQ:), Amazon (NASDAQ:)NVIDIA (NASDAQ:), JPMorgan Chase (NYSE:)and Procter & Gamble (NYSE:).

The ETF has gained 6.8% over the past 12 months and hit a record high in early January. Still, it’s down 10% so far in 2022.

Rear P/E and P/B ratios are 23.19x and 4.61x. Buy-and-hold investors interested in issues that affect a range of stakeholders might want to research JUST further.

2. ProShares S&P 500 Ex-Healthcare ETF

  • Current price: $88.95
  • 52 week range: $81.79 – $101.07
  • Dividend yield: 1.23%
  • Spending rate: 0.09% per year

Our attention now turns to the , considered a barometer for Wall Street by showing the performance of the 500 largest publicly traded names in the United States. The index, which has 11 sectors, is down 10.5% year-to-date (YTD).

Our next fund is the ProShares S&P 500® Ex-Healthcare ETF (NYSE:), which focuses on S&P 500 stocks, excluding those in the healthcare sector. This thematic fund was first listed in September 2015.

SPXV Weekly Chart

SPXV tracks the S&P 500 Ex-Health Care Index and has 440 stocks. Looking at sub-sectors, we see Technology with (33.64%), Consumer Discretionary (14.44%), Financials (12.33%) and Communication Services (11.74%) , among others.

The top 10 names represent more than a third of the net assets of $4.50 million. In other words, it is a small ETF.

Apple and Microsoft have the highest weighting in SPXV with more than 7%, like our previous fund. Amazon, Alphabet, You’re here (NASDAQ:), Metaplatforms (NASDAQ:), Nvidia, Berkshire Hathaway B (NYSE:)and JPMorgan Chase are the other names to note on the list.

SPXV is up over 8% in the past 12 months and hit an all-time high (ATH) in January. Since then, it has lost more than 10.3%.

The P/E and P/B ratios stand at 25.71x and 4.55x. SPXV might be suitable for those who want reduced exposure to healthcare names.

Note that ProShares offers other similar thematic ETFs. They are:

  • ProShares S&P 500® Non-Energy ETF (NYSE:)—down 10.5% year-to-date
  • ProShares S&P 500® ex-Financials ETF (NYSE:)—down 11.6% year-to-date

About Franklin Cheatham

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