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The Zacks Analyst Blog Highlights Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF, iShares US Technology ETF and Vanguard Mega Cap Growth ETF
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For Immediate Release
Chicago, IL – December 7, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Technology Select Sector SPDR Fund (XLK - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) and Vanguard Mega Cap Growth ETF (MGK - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Apple Regains $3T in Market Cap: ETFs in Focus
In a remarkable comeback story, the technology giant Apple Inc. has once again claimed its spot as a $3-trillion company, reinstating its position as a titan in the global tech industry. This resurgence marks the first return to the $3-trillion milestone since August, showcasing the company's robust recovery and investor confidence.
Investors seeking to tap the opportune moment could invest in ETFs having the largest allocation to the tech titan, especially those which sport a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).
The journey back to $3 trillion was fueled by a 2.1% rise in Apple's shares, reflecting a strong investor belief in the company's innovation and market strategy. This boost in the stock value is a testament to Apple's enduring appeal and the market's optimistic outlook on its future.
The Apple stock has gained more than 48% so far this year despite slowing growth and challenges in markets like China. This is mainly due to the company’s consistent cash flow, the global popularity of its products and robust shareholder return programs.
Promising Growth Ahead
With this significant achievement, Apple sets the stage for further innovation and growth. The iPhone maker is poised to expand its product range with the anticipated launch of the Vision Pro virtual reality headset next year. This groundbreaking product, Apple's first significant new computing platform since the Apple Watch in 2014, underscores the company's dedication to innovation. By venturing into virtual reality, Apple is poised to redefine technological boundaries, further solidifying its position as a leader in the tech industry (read: High-Quality ETFs for Long-Term Investors).
Bulls Are Here!
Wall Street is bullish on the stock. Apple currently has an average brokerage recommendation (ABR) of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 29 brokerage firms. The current ABR compares to an ABR of 1.71 a month ago based on 29 recommendations.
Of the 29 recommendations deriving the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 58.62% and 10.34% of all recommendations. A month ago, Strong Buy made up 58.62%, whereas Buy represented 10.34%.
Based on short-term price targets offered by 26 analysts, the average price target for Apple comes to $201.53. The forecasts range from a low of $140.00 to a high of $240.00.
Solid Earnings Estimate Revisions
Apple saw a positive earnings estimate revision of a penny over the past month for the fiscal year (ending Sep 2024), with estimated earnings growth of 7.01%. This compares favorably with the industry’s growth projection of 5.88% (read: 4 ETFs to Implement Buffett's Investing Philosophy).
AAPL currently has a Zacks Rank #3 (Hold) and falls under a top-ranked Zacks industry (top 15%).
ETFs in Focus
Technology Select Sector SPDR Fund
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 64 securities in its basket, with Apple making up for a 23% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage and peripherals, and semiconductors and semiconductor equipment.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with an AUM of $55.7 billion and an average daily volume of 6.7 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF
Vanguard Information Technology ETF manages $56.5 billion in its asset base and provides exposure to 318 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 21.6% share. Systems software, technology hardware storage & peripheral, semiconductors, and application software are the top four sectors.
Vanguard Information Technology ETF has an expense ratio of 0.10%, whereas volume is solid at nearly 499,000 shares.
MSCI Information Technology Index ETF
MSCI Information Technology Index ETF is home to 312 technology stocks with an AUM of $8 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.2% share in the basket (read: Tech Turns Hot, ETFs Touch New 52-Week Highs).
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 211,000 shares a day.
iShares US Technology ETF
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 132 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 18% of the assets.
iShares Dow Jones US Technology ETF has an AUM of $13.4 billion, and charges 40 bps in fees and expenses. Volume is good as it exchanges 781,000 shares a day.
Vanguard Mega Cap Growth ETF
Vanguard Mega Cap Growth ETF offers diversified exposure to the largest growth stocks in the U.S. market. It tracks the CRSP US Mega Cap Growth Index and holds 88 securities in its basket, with Apple accounting for 15.1% of the total assets.
Vanguard Mega Cap Growth ETF charges 7 bps in annual fees and trades in a good volume of around 336,000 shares a day on average. The fund has an AUM of $15.8 billion.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF, iShares US Technology ETF and Vanguard Mega Cap Growth ETF
For Immediate Release
Chicago, IL – December 7, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Technology Select Sector SPDR Fund (XLK - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) and Vanguard Mega Cap Growth ETF (MGK - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Apple Regains $3T in Market Cap: ETFs in Focus
In a remarkable comeback story, the technology giant Apple Inc. has once again claimed its spot as a $3-trillion company, reinstating its position as a titan in the global tech industry. This resurgence marks the first return to the $3-trillion milestone since August, showcasing the company's robust recovery and investor confidence.
Investors seeking to tap the opportune moment could invest in ETFs having the largest allocation to the tech titan, especially those which sport a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).
The journey back to $3 trillion was fueled by a 2.1% rise in Apple's shares, reflecting a strong investor belief in the company's innovation and market strategy. This boost in the stock value is a testament to Apple's enduring appeal and the market's optimistic outlook on its future.
The Apple stock has gained more than 48% so far this year despite slowing growth and challenges in markets like China. This is mainly due to the company’s consistent cash flow, the global popularity of its products and robust shareholder return programs.
Promising Growth Ahead
With this significant achievement, Apple sets the stage for further innovation and growth. The iPhone maker is poised to expand its product range with the anticipated launch of the Vision Pro virtual reality headset next year. This groundbreaking product, Apple's first significant new computing platform since the Apple Watch in 2014, underscores the company's dedication to innovation. By venturing into virtual reality, Apple is poised to redefine technological boundaries, further solidifying its position as a leader in the tech industry (read: High-Quality ETFs for Long-Term Investors).
Bulls Are Here!
Wall Street is bullish on the stock. Apple currently has an average brokerage recommendation (ABR) of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 29 brokerage firms. The current ABR compares to an ABR of 1.71 a month ago based on 29 recommendations.
Of the 29 recommendations deriving the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 58.62% and 10.34% of all recommendations. A month ago, Strong Buy made up 58.62%, whereas Buy represented 10.34%.
Based on short-term price targets offered by 26 analysts, the average price target for Apple comes to $201.53. The forecasts range from a low of $140.00 to a high of $240.00.
Solid Earnings Estimate Revisions
Apple saw a positive earnings estimate revision of a penny over the past month for the fiscal year (ending Sep 2024), with estimated earnings growth of 7.01%. This compares favorably with the industry’s growth projection of 5.88% (read: 4 ETFs to Implement Buffett's Investing Philosophy).
AAPL currently has a Zacks Rank #3 (Hold) and falls under a top-ranked Zacks industry (top 15%).
ETFs in Focus
Technology Select Sector SPDR Fund
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 64 securities in its basket, with Apple making up for a 23% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage and peripherals, and semiconductors and semiconductor equipment.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with an AUM of $55.7 billion and an average daily volume of 6.7 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF
Vanguard Information Technology ETF manages $56.5 billion in its asset base and provides exposure to 318 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 21.6% share. Systems software, technology hardware storage & peripheral, semiconductors, and application software are the top four sectors.
Vanguard Information Technology ETF has an expense ratio of 0.10%, whereas volume is solid at nearly 499,000 shares.
MSCI Information Technology Index ETF
MSCI Information Technology Index ETF is home to 312 technology stocks with an AUM of $8 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.2% share in the basket (read: Tech Turns Hot, ETFs Touch New 52-Week Highs).
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 211,000 shares a day.
iShares US Technology ETF
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 132 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 18% of the assets.
iShares Dow Jones US Technology ETF has an AUM of $13.4 billion, and charges 40 bps in fees and expenses. Volume is good as it exchanges 781,000 shares a day.
Vanguard Mega Cap Growth ETF
Vanguard Mega Cap Growth ETF offers diversified exposure to the largest growth stocks in the U.S. market. It tracks the CRSP US Mega Cap Growth Index and holds 88 securities in its basket, with Apple accounting for 15.1% of the total assets.
Vanguard Mega Cap Growth ETF charges 7 bps in annual fees and trades in a good volume of around 336,000 shares a day on average. The fund has an AUM of $15.8 billion.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.