ETFs to Gain as Alphabet Beats Apple in Market Capitalization

In a significant shift, Alphabet GOOGL, the parent company of Google, closed the first week of 2026 with a higher market capitalization than Apple AAPL for the first time since 2019. Alphabet’s value ended at $3.88 trillion, edging past Apple’s $3.84 trillion, after surging a solid 65% in 2025.For investors, this represents a prime opportunity to capitalize on Alphabet’s surging momentum through broad exchange-traded funds (ETFs), avoiding exposure to single stock risks.Alphabet Tops Apple: The AI and Autonomous LeadThe market valuation flip is rooted in a widening innovation gap between the two tech titans. While Apple has faced criticism for a "restrained" approach to the artificial intelligence (AI) arms race and delays in Siri’s generative upgrades, Alphabet has been dominating headlines lately. In late 2025, GOOGL unveiled its seventh-generation "Ironwood" tensor processing unit (TPU), a custom AI chip emerging as a credible alternative to Nvidia’s NVDA offerings. This was quickly followed by the widely praised launch of Gemini 3, its most advanced AI model. The company’s market dominance in generative AI solutions can be further supported by its CEO, Sundar Pichai, reporting solid demand for Google Cloud, which resulted in more than 30% growth in the third quarter of 2025.  Conversely, Apple has been perceived as largely absent from the generative AI race that began with ChatGPT. The company delayed its promised, next-generation "more personal Siri" AI assistant from 2025 to 2026, a setback that has left investors waiting. Beyond software, Alphabet has established its dominance in the physical world. Alphabet’s Waymo is largely considered the undisputed leader in the U.S. robotaxi market, of late, with the company announcing a 2026 expansion into London and seeking a $110 billion standalone valuation. On the contrary, Apple officially canceled its autonomous electric vehicle project (known as "Project Titan") in 2024. The company is no longer reportedly developing any self-driving car or core autonomous driving technology.Therefore, Alphabet’s dual-track success in autonomous EVs and Generative AI must have boosted Wall Street’s confidence in the stock more than the iPhone maker, which started the year with a rate downgrade from Raymond James that cited AAPL’s stretched valuation as the reason behind the downgrade.Why ETFs?Considering the aforementioned discussion, investors might be eager to add Alphabet to their portfolio. While buying Alphabet stock directly captures its gains, it also concentrates risk. Investing in a diversified ETF is a prudent strategy to manage this single-stock volatility while still capturing the sector's overall growth. ETFs inherently spread investment across dozens or hundreds of companies. This allows investors to benefit from Alphabet’s AI leadership while remaining cushioned if any single company, including Alphabet, encounters unexpected challenges. Furthermore, a diversified ETF provides exposure to an entire ecosystem ranging from semiconductor manufacturers to cloud infrastructure providers, ensuring you don't miss the next wave of growth from other leaders.ETFs for Your PortfolioFor investors seeking Alphabet-heavy yet diversified exposure, these three ETFs stand out as compelling choices:Global X PureCap MSCI Communication Services ETF GXPCThis fund, with assets worth $63.09 million, offers exposure to 27 U.S.-listed companies classified within the Communication Services sector. GOOGL holds the first spot in this fund, with 28.84% weightage. The fund charges 15 basis points (bps) as fees. Vanguard Communication Services ETF VOX This fund, with assets worth $6.3 billion, offers exposure to 122 U.S. companies within the communication services sector. GOOGL holds the second spot in this fund, with 14.52% weightage. The fund charges 9 bps as fees. Communication Services Select Sector SPDR ETF XLCThis fund, with assets under management (AUM) worth $26.88 billion, offers exposure to 23 companies from telecommunication services, media, entertainment and interactive media & services industries. GOOGL holds the second spot in this fund, with 11% weightage. The fund charges 8 bps as fees. Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>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 NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Vanguard Communication Services ETF (VOX): ETF Research Reports State Street Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Global X PureCap MSCI Communication Services ETF (GXPC): 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