7 Ways to Buy Apple … Without Buying AAPL

Numerous tech stocks have a hand in Apple's growth

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7 Ways to Buy Apple … Without Buying AAPL

Tech ETFs

IT information technology 185 Flickr 7 Ways to Buy Apple ... Without Buying AAPLWant to buy Apple, but don’t want to pay more than $500 per share? Want to get a focused play on the stock that still has a little diversification just for safety’s sake? Many of these suppliers achieve those goals — but don’t overlook ETFs.

Take the Select Sector Technology SPDR (NYSE:XLK) that has a 17.5% weighting on Apple as of this writing — with the Nos. 2 and 3 positions being Microsoft (NASDAQ:MSFT) and International Business Machines (NYSE:IBM), both at around 8%. XLK is up about 13% so far in 2012 vs. about 30% for Apple, but you’re trading diversification for returns, and that reduces your risk if Apple heads south.

Same for the iShares Dow Jones US Technology ETF (NYSE:IYW). In this case you have a 20% weighting in Apple, then 9% in IBM and MSFT at Nos. 2 and 3. This fund is up 15% year-to-date, beating the Nasdaq but obviously not keeping place with the performance of Apple alone.

A bonus: Both of these funds also have a footprint in many of the suppliers named here, in case you’re having trouble choosing.

Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. Jeff Reeves holds a position in Alcoa, but no other publicly traded stocks.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/7-ways-to-buy-apple-without-buying-aapl/.

©2014 InvestorPlace Media, LLC

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