Apple Vision Pro Launch: Here Are 3 Tech Sector ETFs With Apple as a Top Holding

The Technology Select Sector SPDR Fund (XLK)

One of the most popular technology sector ETFs among investors due to a combination of brand-name recognition and high liquidity is XLK. By tracking the Technology Select Sector Index, XLK provides concentrated exposure to 64 leading tech sector stocks held in the S&P 500 index. The ETF has been around since December 1998 and charges an affordable 0.10% expense ratio and has an options chain.

The ETF also has sizable exposure to Apple, which is currently its second-largest holding at 22.92% behind Microsoft at 23.65%. Together, both stocks account for just over 46% of the ETF. This is bad for diversification, but good if you're looking for concentrated exposure to the leading companies. The ETF also offers good AI and semiconductor exposure via holdings in Nvidia, AMD, and Broadcom.

Vanguard Information Technology ETF (VGT)

A popular tax-loss harvesting partner for XLK is VGT, one of Vanguard's numerous sector-specific ETFs and a direct competitor to the SPDR "Select Sector" series of ETFs. This ETF tracks the much broader MSCI US Investable Market Information Technology 25/50 Index, which also holds small and mid-cap U.S. tech sector stocks, currently sporting a total of 364 holdings. VGT also charges a 0.10% expense ratio.

Thanks to the smattering of additional mid and small caps, this ETF has lower exposure to the mega-caps. Still, Apple occupies the ETF's top spot with a 22.72% weight, followed by Microsoft at 18.01%, and Nvidia at 6.09%. What's different about this ETF compared to XLK is the presence of two fintech companies, Visa and Mastercard respectively.

Direxion Daily Technology Bull 3X Shares ETF (TECL)

Short-term traders looking to profit from continued momentum in the technology sector may prefer a leveraged ETF like TECL. This ETF targets a daily return three times that of the Technology Select Sector Index, the same benchmark tracked by XLK. Should the index return 2% in a day, TECL will target a 6% return, and vice-versa if the index falls. The ETF is much pricier with a 0.97% expense ratio.

The exposures in this ETF mirror that of XLK, with Apple holding a 22.82% movement. This makes the ETF a possible way to bet on an Apple or tech sector earnings  , without the need for margin or options. However, keep in mind that leveraged ETFs like TECL are meant as daily holdings. Long-term holds of these ETFs can result in unpredictable results due to how compounding works.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.