Koshiro Kiyota / iStock.com

Apple is the most valuable company in the world based on its market cap of over $3.6 trillion, as of the end of February. Still, investing in any stock comes with risk. There’s no guarantee that Apple will continue its reign as one of the top companies in the world and even if it doesn’t lose value, it might simply grow at a slower pace than competitors. 

So, if you want to get a taste of Apple stock but not buy shares directly, you can still gain exposure through more diversified mutual funds and exchange-traded funds (ETFs). That way, you can still benefit if Apple’s stock performs well, but you’re also invested in many other companies, rather than risking it all on Apple. Below are some examples of how to indirectly invest in Apple.

Large-Cap Index Funds

A broad index fund that invests in large companies, such as one that tracks the S&P 500 or Nasdaq 100, typically gives you significant exposure to Apple. For example, in the Vanguard S&P 500 ETF (“VOO”), Apple is the largest holding, accounting for nearly 7% of the fund.

Still, by investing in a fund like VOO, you also get similar levels of exposure to tech giants like Microsoft and Nvidia, along with lower percentages of exposure to hundreds of other big companies across sectors. For example, 0.40% of VOO is in McDonald’s stock, 0.34% is in American Express and 0.12% is in Hilton, as of the fund’s latest reported holdings in January.

If you want even more exposure to Apple, consider a fund like the Invesco QQQ ETF. This ETF is more tech-focused but still has diverse holdings of large companies. Apple accounts for nearly 9.5% of the fund’s holdings, but it also holds nearly 3% in Costco and 2.67% in Netflix, for example, as of its latest reported holdings in February.

Target-Date Funds

Similar to investing in large-cap index funds, you can often gain exposure to Apple stock through retirement vehicles such as target-date funds. These are mutual funds or ETFs that typically invest in a basket of other funds that align with your target year of retirement. So, if you’re 25 and plan to retire in about 40 years, you might invest in a target-date 2065 fund. 

While the exact investment strategy and holdings vary by fund manager and the target year — generally getting more conservative as it gets closer to retirement age — Apple tends to still take up a significant chunk of these funds. However, the percentage is likely less than if you directly invested in a large-cap index fund, because target-date funds often include a mix of underlying funds, like for mid caps, small caps, bonds, etcetera. 

So, you might need to do some digging to see if this gives you the type of exposure you’re looking for. Also, note that your exposure to Apple would likely decrease over time as the fund moves from more aggressive to conservative as the target date approaches.

Sector Funds

Lastly, if you want to invest in Apple and similar companies, you could put money into a sector ETF or mutual fund. These have narrower focuses than large-cap index funds, as the holdings are all centered on a theme. You might find some tech-sector funds have large Apple holdings, but be sure to look into the details. 

For example, a sector fund might have a broad tech focus and include Apple, but another might be more software-focused and not include Apple. Also, keep in mind that these funds can potentially have different risk or return characteristics than broader index funds, as the companies within these sector funds are often more correlated. So, if Apple and other tech stocks do well, the fund might outperform the S&P 500, for example, but if tech struggles while financial stocks soar, then perhaps these sector funds would lag a broader index like the S&P 500.