Apple May Be In Your ETF

September 11, 2018

As Apple announces new products this week, it’s worth noting that Apple stock (AAPL) is widely held by ETFs and mutual funds. It may be in your portfolio.

AAPL is a top-10 holding in 132 ETFs and 2,300 mutual fund share classes tracked by CFRA. Going beyond top-10 holdings, Apple is held by 252 ETFs, with a combined 297 million shares held, according to the ETF.com Stock Finder tool.

As the world’s most valuable public company, Apple is a top constituent in many broadly diversified, market-cap-weighted index ETFs, including the SPDR S&P 500 Trust (SPY), the Vanguard Total Stock Market Index Fund (VTI), the Invesco QQQ Trust (QQQ) and the iShares Russell 1000 (IWB).

Meanwhile, the technology stock is a heavyweight in more sector-specific ETFs, such as the Technology Select Sector SPDR (XLK) and the Vanguard Information Technology ETF (VGT), and growth-oriented ETFs, such as the iShares S&P 500 Growth ETF (IVW) and the Vanguard Growth ETF (VUG).

Less-Obvious Holders

Though the above may seem obvious, there are some less apparent and yet popular ETFs recently holding a top-10 position in Apple. Among single-factor ETFs, the iShares Edge MSCI U.S.A. Value Factor ETF (VLUE) and the Invesco S&P 500 Quality ETF (SPHQ) are some notable examples, while the stock screens well for multifactor ETFs such as the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) and the iShares Edge MultiFactor U.S.A. (LRGF) that combine quality and value metrics with others.

Meanwhile, there are 18 dividend ETFs holding a top-10 stake in Apple, despite the company’s relative short history of consistently returning cash to shareholders. The iShares Core Dividend Growth ETF (DGRO) and the WisdomTree US Quality Dividend Growth Fund (DGRW) are two such examples.

The above ETFs hold Apple because it is a member of the underlying index they track, but most of the 2,300 mutual funds CFRA rates with a stake in Apple take an active perspective. The managers behind these funds have discretion on what to own and how much of it.

As Apple makes headlines with product launches, it’s a good time to know what you own in your ETF, and realize that Apple stock may be in more than one ETF you own.

At the time of writing, neither the author nor his firm held any of the securities mentioned. Todd Rosenbluth is director of ETF and mutual fund research at CFRA, an independent research firm that acquired S&P Global Market Intelligence's equity and fund business in October 2016. He can be reached at [email protected]. Follow him on Twitter @ToddCFRA.

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