Play Apple and Mattel With These ETFs

Apple's(AAPL Quote) brand-new touch-screen version of the iPod music player may not actually be the greatest innovation since sliced bread, despite all the buzz it generated this week. But even small hints of product launches from Apple seem to generate media hype that feeds on itself until consumers and investors alike are whipped into a frenzy.

Moreover, Apple's decision to slash the price of its costlier iPhone put a dent in the company's stock price Wednesday, providing a better buying opportunity.

So now that some members of the media think CEO Steve Jobs can single-handedly save holiday-season sales, what's the best way to play this stock?

Take a look at the Internet Architecture HOLDRs Trust (IAH Quote). As of August 30, Apple, at 10.8% of assets, was the fourth-largest holding of this exchange-traded fund. The fund also allocates 29.0% of assets to IBM(IBM Quote), 21.2% to Hewlett-Packard (HPQ Quote) and 15.4% to Cisco Systems(CSCO Quote).

This ETF meets all the criteria to be considered technically bullish: It has a five-day moving average above its 10-day moving average and a convergence-divergence indicator giving a fresh buy signal within the last 10 days. The convergence-divergence indicator, created by Gerald Appel, uses exponential moving averages to find turning points in the price movements of securities. IAH has also set a new 52-week high in the last five trading days.