2022-09-19

Looks Like XLK Already Sold Apple

I made the case for Why You Shouldn't Own Apple Stock. The main reason is its large weight in various indexes. Aside from being an indication of a major market top, it also creates headwinds for funds because they have to sell the position down or not invest inflows into it depending on market conditions. It looks like XLK pulled the trigger early and sold off some Apple. The sale is evidenced by the gap between the weighting of Apple in the fund and in the index. As of September 15 close, both are similar and above 25 percent. A day later, Apple's weight in the fund is down about 1.5 percent. A news item on the SPDR site indicates funds were rebalanced heading into today. They took the opportunity to lighten up Apple exposure.

No comments:

Post a Comment