Are Apple ETFs Ripe for a Rebound?

Apple AAPL shares have outperformed the S&P 500 over the past week, falling just 1% compared to the index’s 2.3% decline. And why not? The beaten-down iPhone maker, which is down 18% so far this year, has been receiving a string of good news lately.On April 12, 2025, President Donald Trump reportedly excluded smartphones, laptops, and various other tech devices and components from his newly imposed reciprocal tariffs. According to the White House, these exemptions were granted to give companies time to shift manufacturing to the United States.Then on April 22, 2025, Wall Street received more signs of easing trade tensions. President Trump and Treasury Secretary Scott Bessent both hinted that the 145% tariffs on Chinese goods could be reduced in the near future.Markets reacted positively, with the SPDR S&P 500 ETF SPY climbing 2.6%, the SPDR Dow Jones Industrial Average ETF Trust DIA gaining 2.7%, and the Invesco QQQ Trust QQQ advancing 2.6%. Apple Shares rose 3.4% on April 22 and advanced 2.8% after hours (at the time of writing).A Likely Win for Tech Behemoths Like AppleFor companies like Apple, any exemption or sign of easing trade tensions is a massive win. The company manufactures more than 80% of iPads and over half of its Mac computers in China, according to Evercore ISI, as quoted on CNBC.Note that in the days following Trump’s initial tariff announcement, Apple’s market value dropped by more than $640 billion. Analysts estimated that iPhone prices could have surged to $3,500 under the full tariff scheme.Time to Scoop Up Apple Shares?Despite recent challenges, Apple’s robust cash flow, strong balance sheet, and aggressive share buyback program have traditionally made it a safe bet for investors. However, those strengths have so far been overshadowed by tariff-related risks.The stock’s 14-day Relative Strength Index (RSI) has dropped to 45.92, signaling considerable oversold conditions.The stock’s simple moving average (SMA) 200-day stood at 227.93 while SMA for 50-day period stood at 220.46. The current price of Apple shares was $199.74 as of April 22, 2025.When the current price of a stock is below both the 50-day and 200-day simple moving averages (SMA), it generally indicates bearish momentum. However, given the latest tariff-led chaotic scenario, buyers were probably hesitant to step in. With the Trump administration signally trade de-escalation, buyers may now use the latest dip as a buying opportunity.Valuation Looks DecentAt roughly 27.81 times forward earnings, Apple’s valuation is at its lowest point since 2023. Although this is still slightly above the 10-year median of 22.28X, some investors view it as an entry point.Apple’s price-to-sales ratio stands at 7.44X, down from a five-year high of 9.12x, while it’s a five-year low is 5.09x.In a nutshell, Apple shares have priced in a lot of risks and corrected valuation concerns amid the ongoing tariff turmoil.Apple shares have a Zacks Rank #3 (Hold). It has strong growth score of A.Apple-Heavy ETFs in FocusInvestors encouraged by Apple’s valuation correction and recent cues of trade de-escalation may consider buying the dip in Apple stock. Investors should note that exposure can be gained through Apple-heavy exchange-traded funds (ETFs) like iShares Global Tech ETF IXN , Vanguard Information Technology ETF VGT, Fidelity MSCI Information Technology Index ETF FTEC, iShares U.S. Technology ETF IYW, and Technology Select Sector SPDR Fund XLK. The basket approach minimizes the company-specific concentration risks. Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks