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Still Bullish On Apple Stock? 2 ETFs Offer Robust Exposure, Lower Risk

By Investing.com (Tezcan Gecgil/Investing.com )ETFsMar 16, 2022 08:06
uk.investing.com/analysis/still-bullish-on-apple-stock-2-etfs-offer-robust-exposure-lower-risk-200513130
Still Bullish On Apple Stock? 2 ETFs Offer Robust Exposure, Lower Risk
By Investing.com (Tezcan Gecgil/Investing.com )   |  Mar 16, 2022 08:06
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Earlier this month, at its most recent public event, Apple (NASDAQ:AAPL) revealed an array of exciting updates to its product portfolio. Investors were especially keen to learn about the cheaper iPhone SE with 5G connectivity that enables faster data transfer speeds.

In January, the Cupertino, California-based tech giant announced Q1 FY22 results, which saw record revenues of $123.9 billion, up 11% year-over-year. Of that amount, over $71 billion came from iPhone sales. Shares of Apple closed Tuesday at $155.09.

AAPL Weekly Chart
AAPL Weekly Chart

Expectations are that the new iPhone SE will drive sales in Asia and other emerging markets, expanding the company's global consumer base. Furthermore, 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 tech rout didn't spare its stock. As a result, the company lost 12.6% of its value year-to-date.

Today's article introduces two exchange-traded funds (ETFs) that could appeal to readers interested in buying a fund that has the world's largest company by market cap as its primary holding.

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

  • Current Price: $61.41
  • 52-week range: $56.21 - $68.92
  • Dividend yield: 1.20%
  • Expense ratio: 0.20% per year

The Goldman Sachs JUST U.S. Large Cap Equity ETF (NYSE:JUST) provides exposure to U.S. large-capitalization (cap) firms selected for their "just business behavior," as calculated by JUST Capital. This not-for-profit organization measures and ranks companies on the issues Americans care about most.

Such topics typically range from environmental factors to worker satisfaction, consumer rights, and how businesses support their communities. This ranking reminds us of the power consumers have in society.

JUST Weekly Chart
JUST Weekly Chart

JUST, which has 472 holdings, tracks the JUST U.S. Large Cap Diversified Index. The fund became available in June 2018.

In terms of sectoral 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 close to a third of its $264.4 million net assets.

Apple has the largest slice in the portfolio, with 7.4%. Next comes Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), NVIDIA (NASDAQ:NVDA), JPMorgan Chase (NYSE:JPM), and Procter & Gamble (NYSE:PG).

The ETF has gained 6.8% in the last 12 months and hit a record high in early January. Yet, it is down 10% so far in 2022.

Trailing 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-Health Care ETF

  • Current Price: $88.95
  • 52-week range: $81.79 - $101.07
  • Dividend yield: 1.23%
  • Expense ratio: 0.09% per year

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

Our next fund is the ProShares S&P 500® ex-Health Care ETF (NYSE:SPXV), which focuses on S&P 500 stocks, except those within the Health Care Sector. This thematic fund was first listed in September 2015.

SPXV Weekly Chart
SPXV Weekly Chart

SPXV tracks the S&P 500 Ex-Health Care Index and has 440 holdings. With regard to sub-sectors, we see technology with (33.64%), consumer discretionary (14.44%), financials (12.33%), and communication services (11.74%), among others.

The leading 10 names comprise over a third of net assets of $4.50 million. In other words, it is a small ETF.

Apple and Microsoft have the highest weighting in SPXV with over 7%, like our previous fund. Amazon, Alphabet, Tesla (NASDAQ:TSLA), Meta Platforms (NASDAQ:FB), NVIDIA, Berkshire Hathaway B (NYSE:BRKb), and JPMorgan Chase are the other names to note on the roster.

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

P/E and P/B ratios stand at 25.71x and 4.55x. SPXV could be appropriate for those who want decreased exposure to healthcare names.

We should note that ProShares offers other similar thematic ETFs. They are:

  • ProShares S&P 500® ex-Energy ETF (NYSE:SPXE)—down 10.5% YTD
  • ProShares S&P 500® ex-Financials ETF (NYSE:SPXN)—down 11.6% YTD
Still Bullish On Apple Stock? 2 ETFs Offer Robust Exposure, Lower Risk
 

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Still Bullish On Apple Stock? 2 ETFs Offer Robust Exposure, Lower Risk

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som sithy
som sithy Mar 16, 2022 9:28
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