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Apple Inc. (AAPL - Free Report) reported robust first-quarter fiscal 2025 results, beating estimates for revenues and earnings. The iPhone manufacturer achieved record-breaking results, with all-time high total revenues, earnings per share and services revenues. However, it reported weak iPhone sales.
Apple shares rose 3% in after-market hours on elevated volume, putting ETFs with the largest allocation to the tech titan in focus. Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) , iShares Top 20 U.S. Stocks ETF (TOPT - Free Report) and Technology Select Sector SPDR Fund (XLK - Free Report) have Apple as the top firm with a double-digit allocation. Most of these ETFs have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).
Apple Earnings in Focus
Earnings per share came in at $2.40, outpacing the Zacks Consensus Estimate of $2.36 and increasing 10% from the year-ago earnings. Revenues rose 4% year over year to a record $124.3 billion and edged past the estimated $124 billion, largely driven by its high-margin services division (see: all the Technology ETFs here).
Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, rose 13.9% year over year to an all-time high of $26.3 billion. Revenues from Wearables, Home and Accessories, which includes Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, declined 1.7% to $11.7 billion. Mac and iPad sales rose by double-digit percentages to $8.99 billion and $8.09 billion, respectively, thanks to newer models powered by Apple’s latest silicon.
However, iPhone sales dipped 1% to $69.4 billion. Still, iPhone was the top-selling model in the United States, urban China, India, the United Kingdom, France, Australia, and Japan. Apple is also still struggling in China, with sales falling 11.1% year over year to $18.5 billion.
The tech giant unveiled new Macs, including the new iMac, Mac Mini, and MacBook Pro laptops and a new iPad Mini during the quarter. Apple is set to release a slew of new products in the coming months, including a new entry-level iPhone SE, as well as new iPads and MacBook Airs, according to Bloomberg’s Mark Gurman. The company also plans to bring Apple Intelligence to more markets later this year (read: What Lies Ahead for Apple Stock & ETFs in 2025?).
For the ongoing fiscal second quarter, the iPhone maker expects “low to mid-single digit” sales growth.
Vanguard Information Technology ETF manages $84 billion in its asset base and provides exposure to 316 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Apple accounts for a 17% share. Semiconductors, systems software, technology hardware storage & peripheral, and application software are the top four sectors. Vanguard Information Technology ETF has an expense ratio of 0.10%, whereas volume is solid at nearly 551,000 shares (read: ETFs to Play as Markets Rebound After DeepSeek Sell-Off).
MSCI Information Technology Index ETF is home to 296 technology stocks with an AUM of $13.1 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 17.1% share in the basket. MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 296,000 shares a day.
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 140 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 15.6% of the assets. iShares Dow Jones US Technology ETF has an AUM of $20.4 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 634,000 shares a day.
iShares Top 20 U.S. Stocks ETF offers exposure to the potential growth of mega-cap stocks, which may benefit from their scale and resources. It tracks the S&P 500 Top 20 Select Index and holds 21 stocks in its basket, with AAPL accounting for a 15% share in the basket. iShares Top 20 U.S. Stocks ETF has amassed $143.8 million in its asset base within three months of its inception and charges 20 bps in annual fees. It trades in an average daily volume of 246,000 shares (read: Go Beyond MAGS ETF: Tap Broadening of the Rally With TOPT ETF).
Select Sector SPDR Technology ETF is the most popular and liquid ETF in the technology space, with AUM of $74 billion and an average daily volume of 4 million shares. It offers broad exposure to the technology sector and follows the Technology Select Sector Index. Select Sector SPDR Technology ETF holds about 69 securities in its basket, with Apple occupying the top position at 14.7%. Select Sector SPDR Technology ETF charges 9 bps in fees per year from investors.
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ETFs to Ride on Apple's Best-Ever Revenues
Apple Inc. (AAPL - Free Report) reported robust first-quarter fiscal 2025 results, beating estimates for revenues and earnings. The iPhone manufacturer achieved record-breaking results, with all-time high total revenues, earnings per share and services revenues. However, it reported weak iPhone sales.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Apple shares rose 3% in after-market hours on elevated volume, putting ETFs with the largest allocation to the tech titan in focus. Vanguard Information Technology ETF (VGT - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares US Technology ETF (IYW - Free Report) , iShares Top 20 U.S. Stocks ETF (TOPT - Free Report) and Technology Select Sector SPDR Fund (XLK - Free Report) have Apple as the top firm with a double-digit allocation. Most of these ETFs have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).
Apple Earnings in Focus
Earnings per share came in at $2.40, outpacing the Zacks Consensus Estimate of $2.36 and increasing 10% from the year-ago earnings. Revenues rose 4% year over year to a record $124.3 billion and edged past the estimated $124 billion, largely driven by its high-margin services division (see: all the Technology ETFs here).
Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, rose 13.9% year over year to an all-time high of $26.3 billion. Revenues from Wearables, Home and Accessories, which includes Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, declined 1.7% to $11.7 billion. Mac and iPad sales rose by double-digit percentages to $8.99 billion and $8.09 billion, respectively, thanks to newer models powered by Apple’s latest silicon.
However, iPhone sales dipped 1% to $69.4 billion. Still, iPhone was the top-selling model in the United States, urban China, India, the United Kingdom, France, Australia, and Japan. Apple is also still struggling in China, with sales falling 11.1% year over year to $18.5 billion.
The tech giant unveiled new Macs, including the new iMac, Mac Mini, and MacBook Pro laptops and a new iPad Mini during the quarter. Apple is set to release a slew of new products in the coming months, including a new entry-level iPhone SE, as well as new iPads and MacBook Airs, according to Bloomberg’s Mark Gurman. The company also plans to bring Apple Intelligence to more markets later this year (read: What Lies Ahead for Apple Stock & ETFs in 2025?).
For the ongoing fiscal second quarter, the iPhone maker expects “low to mid-single digit” sales growth.
ETFs to Buy
Vanguard Information Technology ETF (VGT - Free Report)
Vanguard Information Technology ETF manages $84 billion in its asset base and provides exposure to 316 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Apple accounts for a 17% share. Semiconductors, systems software, technology hardware storage & peripheral, and application software are the top four sectors. Vanguard Information Technology ETF has an expense ratio of 0.10%, whereas volume is solid at nearly 551,000 shares (read: ETFs to Play as Markets Rebound After DeepSeek Sell-Off).
MSCI Information Technology Index ETF (FTEC - Free Report)
MSCI Information Technology Index ETF is home to 296 technology stocks with an AUM of $13.1 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 17.1% share in the basket. MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 296,000 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 140 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 15.6% of the assets. iShares Dow Jones US Technology ETF has an AUM of $20.4 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 634,000 shares a day.
iShares Top 20 U.S. Stocks ETF (TOPT - Free Report)
iShares Top 20 U.S. Stocks ETF offers exposure to the potential growth of mega-cap stocks, which may benefit from their scale and resources. It tracks the S&P 500 Top 20 Select Index and holds 21 stocks in its basket, with AAPL accounting for a 15% share in the basket. iShares Top 20 U.S. Stocks ETF has amassed $143.8 million in its asset base within three months of its inception and charges 20 bps in annual fees. It trades in an average daily volume of 246,000 shares (read: Go Beyond MAGS ETF: Tap Broadening of the Rally With TOPT ETF).
Select Sector SPDR Technology ETF (XLK - Free Report)
Select Sector SPDR Technology ETF is the most popular and liquid ETF in the technology space, with AUM of $74 billion and an average daily volume of 4 million shares. It offers broad exposure to the technology sector and follows the Technology Select Sector Index. Select Sector SPDR Technology ETF holds about 69 securities in its basket, with Apple occupying the top position at 14.7%. Select Sector SPDR Technology ETF charges 9 bps in fees per year from investors.