Approximately 100 exchange-traded funds hold shares of Apple Inc. (NASDAQ: AAPL), and when investors start evaluating those ETFs that weigh holdings by market capitalization – a significant chunk of the ETF universe – they will find some funds have large, perhaps excessive exposure, to the iPhone maker.
Of course when Apple is soaring, investors rather like cap-weighted technology sector ETFs or traditional ETFs that track the NASDAQ-100, because those funds usually future double-digit exposure to the iPad maker's stock. There have been instances when Apple's share price was at or near all-time highs of some ETF's having weights of around 20 percent to the stock.
Apple offers another reminder. During its ascent to legendary status, particularly during the 21st century, there have been bumps in the ...
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