3 ETFs That Could Benefit From Apple's Downbeat Guidance

3 ETFs That Could Benefit From Apple's Downbeat Guidance

Today could be a rough one for Apple AAPL. Late Monday, the iPhone maker withdrew guidance for the current quarter, citing issues related to COVID-19, the new coronavirus from China.

Apple factories in China were shuttered in the wake of the epidemic and while some have recently started to come back online, the weeks spent closed mean a massive amount of lost production, including the iPhone 11.

“Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” said Apple in a release issued Monday. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors.”

For active traders, some of the following exchange-traded funds will be worth considering today and perhaps over the course of this week.

Direxion Daily Technology Bear 3X Shares (TECS)

The Direxion Daily Technology Bear 3X Shares TECS has not been the leveraged way of playing the technology sector in recent months simply because the group continues adding to gains, compounding the woes of those that dare short it.

However, the bearish TECS could have its day, or two, this week because the Technology Select Sector Index, the index TECS looks to deliver triple the daily inverse returns of, devotes more than 19% of its weight to Apple.

“While our iPhone manufacturing partner sites are located outside the Hubei province — and while all of these facilities have reopened — they are ramping up more slowly than we had anticipated,” according to Apple.

That's a good reason right there to give TECS a look over the next few days.

Direxion Daily Semiconductor Bear 3X Shares (SOXS)

An array of semiconductor firms are members of the Apple supply chain, making the Direxion Daily Semiconductor Bear 3X Shares SOXS a somewhat predictable addition to this list. SOXS attempts to deliver triple the daily inverse performance of the PHLX Semiconductor Sector Index (XSOX).

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