Should You Bet on Apple-Heavy ETFs Now?

Group 1: Stock Performance and Market Sentiment - Apple (AAPL) shares are down approximately 3.3% year to date, despite a recent surge of around 18% since the start of August and a gain of about 3.8% month to date in September [1] - The average brokerage recommendation (ABR) for Apple is currently 2.04, indicating a majority of analysts remain bullish, with 19 out of 38 recommendations classified as Strong Buy [9][10] - The current stock price of AAPL is $238.47, with a Zacks Rank of 3 (Hold) and a Momentum Score of B [11] Group 2: Upcoming Product Launch - Apple is set to hold its annual fall event next week, where the highly anticipated iPhone 17 Air is expected to be unveiled, introducing significant changes to the flagship product [2] - The new iPhone model may face challenges such as a potential price increase and the absence of premium camera features, which could deter some consumers from upgrading [3] Group 3: Sales Expectations - Despite potential hurdles, analysts predict a rise in smartphone sales, driven by consumers looking to upgrade, with a sizable pool of consumers waiting to upgrade to the iPhone 17 [4] - iPhone sales grew 39% year over year in 2021, indicating a strong demand for upgrades [4] Group 4: Legal and Financial Developments - A recent court ruling allows Google to continue paying Apple $20 billion annually to remain the default search engine on iPhones, which significantly contributes to Apple's Services revenue [6][7] - The $20 billion payment accounted for about 20.8% of Apple's Services revenues, which totaled $96.2 billion last year [6] Group 5: ETF Exposure - Investors are advised to monitor Apple shares closely, particularly in relation to consumer reactions to the iPhone 17 launch, with several ETFs having significant exposure to Apple [12][13]