Investing in large-cap stocks can be a daunting undertaking for the average retail investor. After all, who has the time to learn about the fundamentals of obscure companies like Ford (F) or General Electric (GE) , let alone figure out what they actually do? Luckily, we’ve done the digging, and as a result have developed quite an interesting investment opportunity. We would now like to introduce our first exchange-traded fund, the Large-Cap Stocks Named Apple ETF ($DUM).
When we first came up with the Apple ETF, we decided we needed some pretty strict criteria. Not just any stock could go into the Apple ETF. To be included in the Apple ETF, we decided that a company had to have the following attributes:
1. The company must have been founded on April 1, 1976.
What a lucky coincidence that we were only willing to consider companies that were founded 38 years prior to the formation of the ETF.
2. The company must produce iPhones, iPads, and iMacs.
These electronic products seem to be fairly popular, so we figured that any companies that manufactured them should merit inclusion in the ETF.
3. The company must have the stock ticker AAPL.
We have noticed a direct correlation between stocks with the ticker AAPL and explosive growth since 2004.
We discovered one stock that merited inclusion in the Apple ETF: Apple Inc. (AAPL) .
A little background on these guys: Apple is a company in Cupertino, Ca. that serves as the inspiration for movies about Steve Jobs. As a result, Apple is considered a vital asset of the Hollywood economy, and considering the film industry's penchant for remakes, should serve the company well for years to come.
Shares of DUM are now available for investment at an expense rate of 10 percent. Equities.com’s quantitative analyst Nicholas Bhandari says the biggest advantage of investing in DUM is that “you don’t need to think about it.”
And really, when it comes to investing, you shouldn’t be thinking about it too much anyways. You're welcome, everyone.