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After the closing bell on Jul 19, International Business Machines (IBM - Free Report) reported mixed second-quarter 2023 results. It beat earnings estimates but lagged on revenues. IBM shares dropped 1% in aftermarket hours.
This has put ETFs having the highest allocation to this tech giant in the spotlight. These funds are First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , FT Cboe Vest DJIA Dogs 10 Target Income ETF (DOGG - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , Democratic Large-Cap Core Fund (DEMZ - Free Report) and Morningstar Dividend Leaders Index Fund (FDL - Free Report) .
Earnings per share came in at $2.18, surpassing the Zacks Consensus Estimate of $2.00 but declining 6% from the year-ago earnings. Revenues dipped 0.4% year over year to $15.48 billion and fell short of the consensus estimate of $15.54 billion. The revenue miss was due to a decline in sales of its mainframe computers as businesses cut technology spending (see: all the Technology ETFs here).
Strong demand at its consulting and software businesses drove the results. Consulting revenues increased 4.3%. Software revenues grew 7.2% from the year-ago levels.
IBM maintained its sales growth guidance of 3-5% for 2023 in constant currency, overcoming investor anxiety about weakening demand for Internet technology.
Investors should note that IBM has missed out on the artificial intelligence-fueled rally enjoyed by many other big tech names. The stock is down 3.8% this year.
ETFs in Focus
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It charges 50 bps in annual fees and holds about 92 securities in its basket. Of these firms, IBM takes the fifth spot, making up 7.8% of the assets (read: Fed Pauses Rate Hike, View Hawkish: Dividend ETFs to Bet On).
First Trust NASDAQ Technology Dividend Index Fund has amassed $2 billion in its asset base while trading in a volume of around 117,000 shares per day.
FT Cboe Vest DJIA Dogs 10 Target Income ETF (DOGG - Free Report)
FT Cboe Vest DJIA Dogs 10 Target Income ETF seeks to provide current income with a secondary objective of providing capital appreciation. It provides exposure to the "Dogs of the Dow," the 10 highest dividend-yielding stocks in the Dow Jones Industrial Average on an annual basis. DOGG holds 41 stocks in its basket, with IBM occupying the sixth position at 7.9% share.
FT Cboe Vest DJIA Dogs 10 Target Income ETF has accumulated $4 million in its asset base and trades in a volume of 5,000 shares. It charges 75 bps in fees and expenses.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 29 stocks in its basket, with IBM occupying the third position, accounting for 6.9% (read: Tap the Dow Jones Rally With These ETFs).
Invesco Dow Jones Industrial Average Dividend ETF has managed assets worth $269.5 million while trading in a volume of 44,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Democratic Large-Cap Core Fund is designed to track the Democratic Large-Cap Core Index as calculated and published by S&P Dow Jones Indices. While investing in equities involves risk and principal loss is possible, DEMZ has been designed to attempt to reflect the risk and performance characteristics of the S&P 500. Democratic Large-Cap Core Fund holds 45 stocks in its basket, with IBM occupying the second place at 4.7% of the total assets.
Democratic Large-Cap Core Fund has accumulated $24.9 million in its asset base and trades in an average daily volume of 1,000 shares. It charges 45 bps in annual fees.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
First Trust Morningstar Dividend Leaders Index Fund offers exposure to stocks that have shown the highest dividend consistency and dividend sustainability by tracking the Morningstar Dividend Leaders Index. It holds 100 stocks in its basket, with IBM taking the seventh spot at 4.6% share.
With AUM of $4.3 billion, First Trust Morningstar Dividend Leaders Index Fund charges 45 bps in annual fees from investors and trades in a solid volume of about 1.1 million shares a day. It has a Zacks ETF Rank #3 with a Medium risk outlook.
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IBM Beats on Q2 Earnings: ETFs in Focus
After the closing bell on Jul 19, International Business Machines (IBM - Free Report) reported mixed second-quarter 2023 results. It beat earnings estimates but lagged on revenues. IBM shares dropped 1% in aftermarket hours.
This has put ETFs having the highest allocation to this tech giant in the spotlight. These funds are First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , FT Cboe Vest DJIA Dogs 10 Target Income ETF (DOGG - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , Democratic Large-Cap Core Fund (DEMZ - Free Report) and Morningstar Dividend Leaders Index Fund (FDL - Free Report) .
Earnings per share came in at $2.18, surpassing the Zacks Consensus Estimate of $2.00 but declining 6% from the year-ago earnings. Revenues dipped 0.4% year over year to $15.48 billion and fell short of the consensus estimate of $15.54 billion. The revenue miss was due to a decline in sales of its mainframe computers as businesses cut technology spending (see: all the Technology ETFs here).
Strong demand at its consulting and software businesses drove the results. Consulting revenues increased 4.3%. Software revenues grew 7.2% from the year-ago levels.
IBM maintained its sales growth guidance of 3-5% for 2023 in constant currency, overcoming investor anxiety about weakening demand for Internet technology.
Investors should note that IBM has missed out on the artificial intelligence-fueled rally enjoyed by many other big tech names. The stock is down 3.8% this year.
ETFs in Focus
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It charges 50 bps in annual fees and holds about 92 securities in its basket. Of these firms, IBM takes the fifth spot, making up 7.8% of the assets (read: Fed Pauses Rate Hike, View Hawkish: Dividend ETFs to Bet On).
First Trust NASDAQ Technology Dividend Index Fund has amassed $2 billion in its asset base while trading in a volume of around 117,000 shares per day.
FT Cboe Vest DJIA Dogs 10 Target Income ETF (DOGG - Free Report)
FT Cboe Vest DJIA Dogs 10 Target Income ETF seeks to provide current income with a secondary objective of providing capital appreciation. It provides exposure to the "Dogs of the Dow," the 10 highest dividend-yielding stocks in the Dow Jones Industrial Average on an annual basis. DOGG holds 41 stocks in its basket, with IBM occupying the sixth position at 7.9% share.
FT Cboe Vest DJIA Dogs 10 Target Income ETF has accumulated $4 million in its asset base and trades in a volume of 5,000 shares. It charges 75 bps in fees and expenses.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 29 stocks in its basket, with IBM occupying the third position, accounting for 6.9% (read: Tap the Dow Jones Rally With These ETFs).
Invesco Dow Jones Industrial Average Dividend ETF has managed assets worth $269.5 million while trading in a volume of 44,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Democratic Large-Cap Core Fund (DEMZ - Free Report)
Democratic Large-Cap Core Fund is designed to track the Democratic Large-Cap Core Index as calculated and published by S&P Dow Jones Indices. While investing in equities involves risk and principal loss is possible, DEMZ has been designed to attempt to reflect the risk and performance characteristics of the S&P 500. Democratic Large-Cap Core Fund holds 45 stocks in its basket, with IBM occupying the second place at 4.7% of the total assets.
Democratic Large-Cap Core Fund has accumulated $24.9 million in its asset base and trades in an average daily volume of 1,000 shares. It charges 45 bps in annual fees.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
First Trust Morningstar Dividend Leaders Index Fund offers exposure to stocks that have shown the highest dividend consistency and dividend sustainability by tracking the Morningstar Dividend Leaders Index. It holds 100 stocks in its basket, with IBM taking the seventh spot at 4.6% share.
With AUM of $4.3 billion, First Trust Morningstar Dividend Leaders Index Fund charges 45 bps in annual fees from investors and trades in a solid volume of about 1.1 million shares a day. It has a Zacks ETF Rank #3 with a Medium risk outlook.