Three ETFs for Betting on Apple's Tablet - TheStreet

Three ETFs for Betting on Apple's Tablet

Apple's expected tablet computing device could revolutionize the way people gain access to media. Here's how to wager on its success using ETFs.
Author:
Publish date:

NEW YORK (

TheStreet

) --

Apple's

(AAPL) - Get Report

expected launch this week of a much rumored tablet computing device is expected to do for media what iTunes did for music and the iPhone did for telecommunications.

Apple CEO Steve Jobs reportedly expects the tablet to bring great leaps of innovation to the media industry by repackaging and reselling media content. In fact, the new device apparently aims to bring media efficiency to homes by enabling multiple users to read news, watch television and read emails.

According to

The Wall Street Journal

, Apple has been in negotiations with television networks like

Walt Disney

(DIS) - Get Report

and

CBS

(CBS) - Get Report

to come up with a monthly TV subscription service.

Additionally, the company reportedly has been in talks with the

New York Times

(NYT) - Get Report

and

NewsCorp

(NWSA) - Get Report

to ink a publishing deal regarding books, newspapers and magazines.

On the positive side, Apple is no stranger to devising new ways to access and pay for quality content. Recently, Apple's iTunes became the largest retail music provider. Quarterly revenue derived from the iTunes Store have more than quadrupled in the past four years.

Additionally, Apple's latest earnings report beat Wall Street's expectations, showing record revenue and a huge uptick in iPhone sales. With this in mind, it is likely that the tablet will revolutionalize and reshape the media industry and further bolster revenue at the innovative company.

Apple will likely face some of the same obstacles and hurdles that it did with the music industry and will have to demonstrate a consumer need for the Tablet. Additionally, some technology experts suggest that a lack of ebooks, which are found on

Amazon's

(AMZN) - Get Report

Kindle, could potentially deter a significant number of users.

ETF investors can gain exposure to Apple with the following funds:

The

iShares Dow Jones US Technology

(IYW) - Get Report

, which allocates 9.43% of its assets to Apple and closed at $55.07 on Monday.

The

Technology Select Sector SPDR

(XLK) - Get Report

, which allocates 8.3% of its assets to Apple and closed at $21.84 on Monday.The

iShares S&P North American Technology

(IGM) - Get Report

, which allocates 7.54% of its assets to Apple and closed at $51.79 on Monday.

When investing in these ETFs, it is important to keep in mind the inherent risks that are involved. To help mitigate these risks, it's important to use an exit strategy where price points representing abnormal price weaknesses are triggered.

According to

www.SmartStops.net

, the price points for the previously mentioned ETFs are: IYW at $53.92; XLK at $21.39; IGM at $50.78. These price points fluctuate on a daily basis and are reflective of market conditions and volatility. Updated data can be found at www.SmartStops.net.

Written by Kevin Grewal in Laguna Niguel, Calif.

Kevin Grewal serves as the editorial director and research analyst at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Additionally, he serves as the editorial director at SmartStops.net where he focuses on mitigating risks and implementing exit strategies to preserve equity. Prior to this, Grewal was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.