2. iShares U.S. Technology ETF (NYSE:IYW)
5-Year Performance as of September 26: 113.13%
The iShares U.S. Technology ETF (NYSE:IYW) aims to replicate the performance of the Russell 1000 Technology RIC 22.5/45 Capped Index, which consists of U.S. technology sector stocks. This ETF provides exposure to American companies involved in electronics, computer software and hardware, and information technology, adding diversity to investors’ stock portfolios. The ETF was launched on May 15, 2000, and by September 26, 2023, it held a portfolio of 135 stocks. Its total assets amount to $10.5 billion as of September 26, 2023, with an expense ratio of 0.40%.
Apple Inc. (NASDAQ:AAPL) is the largest holding of the iShares U.S. Technology ETF (NYSE:IYW). Apple Inc. (NASDAQ:AAPL) is a global company known for creating, producing, and promoting smartphones, personal computers, tablets, wearables, and a range of accessories.
According to Insider Monkey’s second quarter database, 135 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL), compared to 131 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with 915.56 million shares worth $177.6 billion.
Choice Equities Capital Management made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Dramatic valuation differences across market cap sizes continue. This has been the case for some time now. Perhaps I have spent too much time discussing these dichotomies, as generally, I feel like if we pick the right stocks and manage market exposures thoughtfully, our equities- oriented portfolio will prosper across various market cycles. However, when markets become as lopsided as they have lately, I feel additional discussion on the market environment is worthwhile, if only to help highlight the opportunities that are available and the likely path forward. I expect future discussions to soon be focused again on our moderately concentrated portfolio. But for now, let’s take one last in-depth look at how far reaching these valuation dichotomies have again become.(Please note: charts that accompany the following can be found in the Appendix.)
Take Apple Inc. (NASDAQ:AAPL) for example. It is the largest stock by market cap, and fairly considered one of the best companies in the world. The company has been extraordinarily successful and improved standards of living everywhere in the process with their ubiquitous products. Along the way, shareholders have been richly rewarded, with shares increasing nearly fourteen-fold over the last ten years while generating an annualized total shareholder return of 31%, including dividends.
On the back of another big quarter for large cap tech, it is now the first stock to surpass the $3T market cap threshold. This makes its weighting in the ~$37T market cap of the S&P 500, ~8%. It also means this one stock’s market cap is larger than that of the entire ~$2.98T market cap of the Russell 2000 index, the first time in history a single stock has outweighed the Russell 2000 – aside from two brief days in September 2020 when Apple’s market cap then accomplished the same…”
