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After the closing bell yesterday, Apple Inc. (AAPL - Free Report) came up with blowout second-quarter fiscal 2021 results, wherein it topped both earnings and revenue estimates. The tech giant reported its highest-ever revenues for the quarter and biggest-ever quarterly haul for the Services business.
Apple Q2 Results in Focus
Earnings per share came in at $1.40, beating the Zacks Consensus Estimate by 40 cents and more than doubled the year-ago earnings of 64 cents. Revenues increased 54% year over year to a record $89.6 billion and edged past the estimate of $77.6 billion. This marks the fastest revenue growth since 2012 and came on the back of record revenues in each of its geographic segments and double-digit growth in each product category (see: all the Technology ETFs here).
Apple has been benefitting from new devices adapted to 5G wireless technology. iPhone sales jumped 66% to a record $47.9 billion on higher demand for 5G phones. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, climbed 27% year over year to a record $16.9 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, soared 24% to a record $7.8 billion. iPad and Mac sales increased 79% and 70%, respectively. Meanwhile, sales in Greater China jumped 87% year over year.
The gadget-maker did not provide any guidance for the fiscal third quarter, citing continued uncertainty in the world economy but said that revenues could grow by "strong double digits" year over year in the fiscal third quarter. Supply constraints resulting from a shortage of computer chips would lower revenues by $3-$4 billion in the ongoing quarter, primarily affecting Mac and iPad sales. Going forward, Apple expects the new second-generation Apple TV 4K and AirTag to drive Wearables, Home and Accessories growth.
Following the earnings beat, shares of Apple rose as much as 4% in after-hours trade. The stock currently has a Zacks Rank #2 (Buy) and a VGM Score of B. It belongs to a bottom-ranked Zacks industry (bottom 18%).
ETFs to Buy
Given this, investors could consider the following ETFs with the largest allocation to the tech titan. These funds have Apple as the top or second firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
This most-popular technology ETF has $41.1 billion in AUM and charges 12 bps in fees per year from its investors. AAPL makes up for roughly 21.9% of the assets (read: PC Sales See Best Growth in 2 Decades: Tech ETFs to Buy).
This ETF provides investors exposure to technology stocks with a 18.6% allocation in Apple. The fund has AUM of $7.5 billion and charges 43 bps in fees and expenses.
This ETF provides exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. Apple accounts for 13% share. IWY has AUM of $3.8 billion and charges 20 bps in annual fees.
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Apple ETFs to Buy as 5G iPhones Power Q2 Earnings
After the closing bell yesterday, Apple Inc. (AAPL - Free Report) came up with blowout second-quarter fiscal 2021 results, wherein it topped both earnings and revenue estimates. The tech giant reported its highest-ever revenues for the quarter and biggest-ever quarterly haul for the Services business.
Apple Q2 Results in Focus
Earnings per share came in at $1.40, beating the Zacks Consensus Estimate by 40 cents and more than doubled the year-ago earnings of 64 cents. Revenues increased 54% year over year to a record $89.6 billion and edged past the estimate of $77.6 billion. This marks the fastest revenue growth since 2012 and came on the back of record revenues in each of its geographic segments and double-digit growth in each product category (see: all the Technology ETFs here).
Apple has been benefitting from new devices adapted to 5G wireless technology. iPhone sales jumped 66% to a record $47.9 billion on higher demand for 5G phones. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, climbed 27% year over year to a record $16.9 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, soared 24% to a record $7.8 billion. iPad and Mac sales increased 79% and 70%, respectively. Meanwhile, sales in Greater China jumped 87% year over year.
The gadget-maker did not provide any guidance for the fiscal third quarter, citing continued uncertainty in the world economy but said that revenues could grow by "strong double digits" year over year in the fiscal third quarter. Supply constraints resulting from a shortage of computer chips would lower revenues by $3-$4 billion in the ongoing quarter, primarily affecting Mac and iPad sales. Going forward, Apple expects the new second-generation Apple TV 4K and AirTag to drive Wearables, Home and Accessories growth.
Following the earnings beat, shares of Apple rose as much as 4% in after-hours trade. The stock currently has a Zacks Rank #2 (Buy) and a VGM Score of B. It belongs to a bottom-ranked Zacks industry (bottom 18%).
ETFs to Buy
Given this, investors could consider the following ETFs with the largest allocation to the tech titan. These funds have Apple as the top or second firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Select Sector SPDR Technology ETF (XLK - Free Report)
This most-popular technology ETF has $41.1 billion in AUM and charges 12 bps in fees per year from its investors. AAPL makes up for roughly 21.9% of the assets (read: PC Sales See Best Growth in 2 Decades: Tech ETFs to Buy).
MSCI Information Technology Index ETF (FTEC - Free Report)
With AUM of $5.7 billion, the product allocates 19.7% in Apple. The ETF has 0.08% in expense ratio.
iShares Dow Jones US Technology ETF (IYW - Free Report)
This ETF provides investors exposure to technology stocks with a 18.6% allocation in Apple. The fund has AUM of $7.5 billion and charges 43 bps in fees and expenses.
Vanguard Information Technology ETF (VGT - Free Report)
This fund manages about $45.3 billion in its asset base with 19.7% allocation in Apple. It has 0.10% in expense ratio (read: Tech ETFs Are Back in Momentum, Soar to All-Time High).
iShares Russell Top 200 Growth ETF (IWY - Free Report)
This ETF provides exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. Apple accounts for 13% share. IWY has AUM of $3.8 billion and charges 20 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>