Apple ETFs To Buy Post Blockbuster Q1 Results

After the closing bell yesterday, Apple Inc. (NASDAQ:AAPL) encouraged investors with blockbuster first-quarter fiscal 2020 results, wherein it topped both earnings and revenue estimates and offered an upbeat outlook for the ongoing quarter.

Apple Q1 Results in Focus

Earnings per share came in at $4.99, beating the Zacks Consensus Estimate by 45 cents and improving 19% from year-ago earnings. Revenues rose 9% year over year a record $91.8 billion and edged past the estimate of $88 billion. This represents the highest Q1 revenues ever, fueled by strong demand for iPhone 11 and iPhone 11 Pro models as well as accelerating growth from Services and Wearables (read: Apple Set to Beat Q1 Earnings Estimates: Tech ETFs to Buy).

iPhone sales rose 7.6% to $55.96 billion, reversing the recent trend of declining growth after the launch of three new handsets — the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max — last September. Meanwhile, Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, climbed 16.9% year over year to an all-time high of $12.72 billion. Revenues from Wearables, Home and Accessories, which includes the Apple Watch, AirPods, HomePod, Apple TV, and Beats headphones, soared 37% to $10 billion while iPad and Mac revenues increased 17% and 9%, respectively.

The gadget-maker foresees total revenues in the range of $63-$67 billion for the second quarter of fiscal 2020. The low end of the guidance is well above the current Zacks Consensus Estimate of $62.51 billion.

Market Impact

Following the results, shares of Apple spiked as much as 3% to a new all-time high in aftermarket hours on elevated volume but pulled back at the close to up 1%. The stock currently has a Zacks Rank #2 (Buy) and VGM Score of C. Additionally, it belongs to a top-ranked Zacks industry (top 42%), suggesting some smooth trading in the days ahead.

ETFs to Tap

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) with a Medium risk outlook.

Select Sector SPDR Technology ETF XLK

This most-popular technology ETF has $27.7 billion in AUM and charges 13 bps in fees per year from investors. AAPL makes up for roughly 20% of assets (read: 5 Low-Cost Tech ETFs for Investors).

MSCI Information Technology Index ETF (TSXV:FTEC)

With AUM of $3.4 billion, the product allocates 18.8% in Apple. The ETF has 0.08% in expense ratio.

iShares Dow Jones US Technology ETF IYW

This ETF provides investors exposure to technology stocks with 17.9% allocation in Apple. The fund has AUM of $5 billion and charges 42 bps in fees and expenses.

Vanguard Information Technology ETF (HN:VGT)

This fund manages about $26.9 billion in its asset base with 18.5% allocation in Apple. It has 0.10% in expense ratio (see: all the Technology ETFs here).

Invesco QQQ QQQ

This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization and Apple accounts for 11.9% share. It has AUM of $89.1 billion and charges 20 bps in annual fees.

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Apple Inc. (AAPL): Free Stock Analysis Report

Technology Select Sector SPDR ETF (NYSE:XLK): ETF Research Reports

Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports

Vanguard Information Technology ETF (VGT): ETF Research Reports

iShares U.S. Technology ETF (IYW): ETF Research Reports

Invesco QQQ (QQQ): ETF Research Reports

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