ETFs for the Smartphone Wars

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Apple's (Nasdaq: AAPL  ) latest earnings report has proven that the iPhone is a major driver in the sales category, and now companies are at war to gain your business. Which exchange-traded funds (ETFs) are able to harness the smartphone wars?

In a relatively short period of time, the cell phone, which was once used to stay in contact with friends and family, has evolved into the smartphone. These mobile devices have moved beyond the business realm and into the general public, and now major providers are vying for your business.

Whether you use an iPhone, [Research In Motion's (Nasdaq: RIMM)] Blackberry, or Droid phone, you can not only make phone calls around the world, but also text, play games, watch and send movies, and keep up to speed with the fast-paced world around us, says Don Dion for The Street. And if you're doing this, you probably know how lucrative your activities are for these companies in the form of big bills. [Mixed News for Technology ETFs.]

On June 23, Motorola introduced the Droid, set for release this Thursday, calling it "a pocket-sized home theater." This has pit up against Apple's iPhone, as well as caused the competition to be so intense that purchasing decisions may become a dreaded task of retailers, says Julie Sartain for PC World. [Why Invest in a Technology ETF?]

As for Apple, during its earnings conference call, they said more than 60 million people visited those stores in the last quarter, spending $2.7 billion, reports Mark Walsh for MediaPost.

For more stories about technology, visit our technology category. Ways to play the war with ETFs:

  • iShares Dow Jones U.S. Telecommunications Sector Index Fund (NYSE: IYZ  ) : This fund gives exposure to carriers and suppliers that are responsible for producing the services and infrastructure that support smartphones.
  • First Trust Dow Jones Internet Index ETF (NYSE: FDN  ) : ETF play for investors who aren't fawning all over Apple and predict that the Android will emerge the victor. Google represents close to 10% of the fund's index.
  • PowerShares QQQ (Nasdaq: QQQQ  ) : Apple represents the single largest chunk of this fund, making up nearly 20% of its portfolio, so consider this an iPhone/iPad play.

Tisha Guerrero contributed to this article.

More from ETFTrends:

This article has been lightly edited. Apple is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.

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