3 Blue Chips Tipping the ETF Scales

Let’s face it: Apple (NASDAQ:AAPL) is everywhere in financial media. And who can begrudge it? Apple is an all-time growth story that wrote its latest chapter when AAPL shares hit $500.

Of course, it’s not just individual investors bidding up those shares. Institutions, mutual funds — everyone wants a piece of Apple. And as Barron’s funds blogger Brendan Conway recently pointed out, exchange-traded funds are no exception. “Apple-flation,” as he calls it, is rampant in the ETF world, with funds boasting AAPL weightings as high as 19.24%!

But don’t think Apple is the lone culprit of top-heavy ETFs. It’s not. Several big-name companies — including Apple’s market-cap rival Exxon Mobil (NYSE:XOM) — tip the scales for scores of ETFs.

Here’s a quick look — courtesy of XTF.com — at other companies that have a big say in how a number of exchange-traded funds perform:

Exxon Mobil

Not surprisingly, Exxon — American markets’ No. 2 company — is a major factor in energy ETFs, accounting for more than a quarter of three funds’ holdings, far beating Apple’s top weightings.

Top 10 ETF Weightings of Exxon Mobil (XOM)
ETF Ticker Market Cap Weighting YTD Return
Direxion Daily Energy
Bear 3X Shares
ERY $98,713,200 26.28% -16.8%
Direxion Daily Energy
Bull 3X Shares
ERX $374,049,921 25.87% +16.76%
ProShares Ultra
Oil & Gas
DIG $272,893,500 25.07% +12.71%
ProShares Ultra Short
Oil & Gas
DUG $83,881,354 24.69% -12.49%
ProShares Short
Oil & Gas
DDG $7,389,000 24.69% -5.48%
iShares Dow Jones
US Energy
IYE $962,843,999 24.62% +6.26%
Vanguard Energy Index VDE $1,889,704,019 21.58% +6.55%
Focus Morningstar
Energy Index ETF
FEG $4,756,560 19.75% +6.57%
Select Sector Energy SPDR XLE $7,654,580,604 18.04% +6.67%
iShares MSCI Global
Energy Producers Fund
FILL $5,179,200 14.61% -0.19%
Exxon is -0.11% YTD


Most of the ETFs with large holdings in ancient tech giant IBM (NYSE:IBM) are Dow-linked, though the Guggenheim Ocean Tomo Growth Index (NYSE:OTR) fund is based on the Ocean Tomo 300 Patent Growth Index, which harnesses the power of intellectual property.

Top 10 ETF Weightings of IBM (IBM)
ETF Ticker Market Cap Weighting YTD Return
Guggenheim Ocean Tomo
Growth Index
OTR $14,103,000 11.36% +11.05%
ProShares Short Dow 30 DOG $277,548,000 11.32% -5.54%
ProShares UltraShort
Dow 30
DXD $288,909,000 11.32% -10.83%
ProShares UltraPro Short
Dow 30
SDOW $79,537,500 11.32% -15.86%
SPDR Dow Jones
Industrial Average ETF
DIA $11,687,913,767 11.31% +5.58%
ProShares Ultra Dow 30 DDM $265,371,000 11.26% +11.53%
ProShares UltraPro Dow 30 UDOW $69,012,000 11.19% +17.83%
Direxion Daily Technology
Bear 3X
TYP $31,105,914 9.66% -32.64%
Direxion Daily Technology
Bull 3X
TYH $190,296,000 9.54% +46.06%
ProShares Ultra Short
REW $10,343,198 9.34% -23.42%
IBM is +4.54% YTD

Johnson & Johnson

While Johnson & Johnson (NYSE:JNJ) is widely known for its consumer goods division, most of the ETFs with large JNJ weightings are health care/pharma-related. A notable standout: the First Trust Morningstar Dividend Leaders (NYSE:FDL) fund, which is a tribute to JNJ’s 3.5% yield.

Top 10 ETF Weightings of Johnson & Johnson (JNJ)
ETF Ticker Market Cap Weighting YTD Return
Direxion Daily Healthcare
Bear 3X Shares
SICK $2,733,027 12.64% -11.67%
Select Sector Health Care
XLV $3,897,192,889 12.61% +4.44%
ProShares Ultra Short
Health Care
RXD $4,162,500 11.54% -9.83%
iShares Dow Jones
US Health Care
IYH $620,235,000 11.51% +5.29%
ProShares Ultra Health Care RXL $40,320,000 11.44% +10.61%
Focus Morningstar
Health Care Index ETF
FHC $5,537,800 11% +4.62%
Vanguard Healthcare
Index Fund
VHT $789,575,015 10.37% +5.82%
iShares Dow Jones
US Pharmaceuticals
IHE $379,488,000 9.27% +3.39%
First Trust Morningstar
Dividend Leaders
FDL $471,595,534 9.19% -1.13%
iShares S&P Global
Healthcare Sector
IXJ $540,144,000 7.61% +3.29%
Johnson & Johnson is -1.48% YTD

Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @KyleWoodley.

Article printed from InvestorPlace Media, https://investorplace.com/2012/02/3-blue-chips-tipping-the-etf-scales/.

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