After the closing bell yesterday, Apple Inc. (
AAPL Quick Quote AAPL - Free Report) came up with better-than-expected first-quarter fiscal 2021 results, wherein it topped both earnings and revenue estimates. The tech giant reported the biggest-ever quarter, surpassing the $100 billion milestone, driven by iPhone 12 sales. Apple Q1 Results in Focus
Earnings per share came in at $1.68, beating the Zacks Consensus Estimate by 27 cents and increasing 35% from the year-ago earnings. Revenues grew 21% year over year to a record $111.4 billion and edged past the estimate of $102.5 billion. Strong sales across all product segments led to the robust performance (see:
all the Technology ETFs here). iPhone sales jumped 17% to a record $65.6 billion led by the release of four new iPhone 12 models with 5G capabilities. Meanwhile, services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, climbed 24% year over year to $15.8 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, soared 29% to $12.97 billion. iPad and Mac sales increased 41% and 21%, respectively. Meanwhile, sales in Greater China also showed the biggest jump of 57% year over year as Chinese consumers snapped up the new iPhone 12 models, the first to feature next-generation 5G capability (read: China ETFs Ruling 52-Week High Chart on Impressive GDP Data). At the end of 2020, Apple reached an all-time high for its installed base of active devices at 1.65 billion, compared with 1.5 billion devices a year ago. It has an installed base of more than 1 billion iPhones, up more the 900 million the company most recently disclosed in 2019. The gadget-maker did not provide any guidance for the fiscal second quarter, citing the COVID-19 uncertainty. However, it said that its services business would face a “tougher year-over-year comparison,” as the company witnessed increased demand for digital services amid the pandemic-led lockdowns announced during the March quarter last year. Despite earnings beat, shares of Apple fell more than 3% in after-hours trade. The stock currently has a Zacks Rank #2 (Buy) and belongs to a top-ranked Zacks industry ( top 8%). ETFs to Bet
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 Quick Quote XLK - Free Report) This most-popular technology ETF has $38.8 billion in AUM and charges 13 bps in fees per year from its investors. AAPL makes up for roughly 23.7% of the assets (read: ETFs to Play as Beginning of Biden Era May Prompt Market Rally). MSCI Information Technology Index ETF ( FTEC Quick Quote FTEC - Free Report) With AUM of $5.5 billion, the product allocates 21.7% in Apple. The ETF has 0.08% in expense ratio. iShares Dow Jones US Technology ETF ( IYW Quick Quote IYW - Free Report) This ETF provides investors exposure to technology stocks with a 21.2% allocation in Apple. The fund has AUM of $7 billion and charges 43 bps in fees and expenses. Vanguard Information Technology ETF ( VGT Quick Quote VGT - Free Report) This fund manages about $42.4 billion in its asset base with 21.7% allocation in Apple. It has 0.10% in expense ratio. iShares Russell Top 200 Growth ETF ( IWY Quick Quote 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 14.8% share. IWY has AUM of $3.4 billion and charges 20 bps in annual fees (read: 5 Growth ETFs to Gain on Stimulus & Vaccine Optimism). Want key ETF info delivered straight to your inbox?
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