Apple's Slide Takes a $2 Billion Bite Out of ETFs

The video discusses Apple's significant influence on major ETFs, highlighting its role as a top holding in several large ETFs and its impact on market cap weighting. It explains how Apple's performance can greatly affect ETF values, using examples like SPY and IVV. The video also explores the concept of equal weighting as a strategy to manage exposure to Apple, mentioning the Guggenheim Equal Weight Tech ETF as an example. The discussion emphasizes the importance of understanding these weighting strategies in ETF investments.

What is the primary reason Apple is considered a major influence in ETFs?

• It is the most innovative tech company.

• It has the highest stock price.

• It is the largest company in the world.

• It is a top holding in several major ETFs.

How does market cap weighting affect the performance of ETFs?

• It focuses on smaller, emerging companies.

• It ensures all stocks have equal influence.

• It amplifies the impact of larger stocks like Apple.

• It reduces the risk of stock volatility.

What is a key feature of the Guggenheim Equal Weight Tech ETF?

• It only includes the top 5 tech companies.

• It focuses on tech startups.

• It heavily invests in Apple.

• It gives equal weight to all stocks.

Why might investors choose an equal weight ETF over a market cap weighted ETF?

• To invest in non-tech sectors.

• To focus on high-growth stocks.

• To reduce the influence of any single stock.

• To increase exposure to Apple.

What percentage of XLK's growth in the past seven years is attributed to Apple?

• 10%

• 25%

• 40%

• 60%