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Apple Beats on Earnings, Issues Weak Outlook: ETFs in Focus
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After the closing bell yesterday, Apple Inc. (AAPL - Free Report) came up with robust second-quarter fiscal 2022 results. The tech giant beat the estimates on both the top and bottom lines and posted record quarterly revenues. However, the solid results were offset by management’s gloomy outlook.
As such, shares fell about 4% in after-hours trading on elevated volume. ETFs having the largest allocation to the tech titan have been in focus. Technology Select Sector SPDR Fund (XLK - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) and iShares Russell Top 200 Growth ETF (IWY - Free Report) have Apple as the top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Apple Results in Focus
Earnings per share came in at $1.52, outpacing the Zacks Consensus Estimate of $1.43 and improving from the year-ago earnings of $1.40. Revenues increased 9% year over year to a record $97.3 billion and edged past the estimate of $94.5 billion (see: all the Technology ETFs here).
The iPhone maker set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. iPhone sales jumped 5.5% to $50.6 billion while services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, soared 17% year over year to a record $19.8 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, spiked 12% to $8.8 billion. iPad sales dropped 2% to $7.6 billion, while Mac sales increased 14.7% to $10.4 billion.
CFO Luca Maestri warned of challenges in the ongoing quarter, including supply constraints that could hurt sales by $4-$8 billion.
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 75 securities in its basket, with Apple making up for 23% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, semiconductors & semiconductor equipment and IT services.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $42.2 billion and an average daily volume of 12 million shares. The fund charges 10 bps in fees per year (read: Cloud Drives Microsoft Fiscal Q3 Earnings: ETFs to Buy).
Vanguard Information Technology ETF manages about $45 billion in its asset base and provides exposure to 357 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.7% share.
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 640,000 shares.
MSCI Information Technology Index ETF is home to 368 technology stocks with AUM of $5.7 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.8% allocation.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 357,000 shares a day.
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 151 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 18.7% of the assets (read: 5 Top Tech Areas That Deserve Your Attention Now).
iShares Dow Jones US Technology ETF has AUM of $7.5 billion and charges 41 bps in fees and expenses. Volume is good as it exchanges nearly 606,000 shares a day.
iShares Russell Top 200 Growth ETF offers exposure to large U.S. companies that are expected to grow at an above-average rate relative to the market. It tracks the Russell Top 200 Growth Index, holding 110 stocks in its basket. Apple accounts for 15.2% of total assets. iShares Russell Top 200 Growth ETF has key holdings in information technology, consumer discretionary and communication with double-digit exposure each.
iShares Russell Top 200 Growth ETF has amassed $4.5 billion in its asset base and trades in an average daily volume of 368,000 shares. It has an expense ratio of 0.20%.
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Apple Beats on Earnings, Issues Weak Outlook: ETFs in Focus
After the closing bell yesterday, Apple Inc. (AAPL - Free Report) came up with robust second-quarter fiscal 2022 results. The tech giant beat the estimates on both the top and bottom lines and posted record quarterly revenues. However, the solid results were offset by management’s gloomy outlook.
As such, shares fell about 4% in after-hours trading on elevated volume. ETFs having the largest allocation to the tech titan have been in focus. Technology Select Sector SPDR Fund (XLK - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) and iShares Russell Top 200 Growth ETF (IWY - Free Report) have Apple as the top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Apple Results in Focus
Earnings per share came in at $1.52, outpacing the Zacks Consensus Estimate of $1.43 and improving from the year-ago earnings of $1.40. Revenues increased 9% year over year to a record $97.3 billion and edged past the estimate of $94.5 billion (see: all the Technology ETFs here).
The iPhone maker set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. iPhone sales jumped 5.5% to $50.6 billion while services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, soared 17% year over year to a record $19.8 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, spiked 12% to $8.8 billion. iPad sales dropped 2% to $7.6 billion, while Mac sales increased 14.7% to $10.4 billion.
CFO Luca Maestri warned of challenges in the ongoing quarter, including supply constraints that could hurt sales by $4-$8 billion.
ETFs to Buy
Technology Select Sector SPDR Fund (XLK - Free Report)
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 75 securities in its basket, with Apple making up for 23% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, semiconductors & semiconductor equipment and IT services.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $42.2 billion and an average daily volume of 12 million shares. The fund charges 10 bps in fees per year (read: Cloud Drives Microsoft Fiscal Q3 Earnings: ETFs to Buy).
Vanguard Information Technology ETF (VGT - Free Report)
Vanguard Information Technology ETF manages about $45 billion in its asset base and provides exposure to 357 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.7% share.
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 640,000 shares.
MSCI Information Technology Index ETF (FTEC - Free Report)
MSCI Information Technology Index ETF is home to 368 technology stocks with AUM of $5.7 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.8% allocation.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 357,000 shares a day.
iShares US Technology ETF (IYW - Free Report)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 151 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 18.7% of the assets (read: 5 Top Tech Areas That Deserve Your Attention Now).
iShares Dow Jones US Technology ETF has AUM of $7.5 billion and charges 41 bps in fees and expenses. Volume is good as it exchanges nearly 606,000 shares a day.
iShares Russell Top 200 Growth ETF (IWY - Free Report)
iShares Russell Top 200 Growth ETF offers exposure to large U.S. companies that are expected to grow at an above-average rate relative to the market. It tracks the Russell Top 200 Growth Index, holding 110 stocks in its basket. Apple accounts for 15.2% of total assets. iShares Russell Top 200 Growth ETF has key holdings in information technology, consumer discretionary and communication with double-digit exposure each.
iShares Russell Top 200 Growth ETF has amassed $4.5 billion in its asset base and trades in an average daily volume of 368,000 shares. It has an expense ratio of 0.20%.