Apple Beats on Q2 Earnings but Shares Slip: ETFs to Watch

Apple Inc. AAPL reported robust second-quarter fiscal 2025 results, beating estimates for revenues and earnings. However, shares of AAPL dropped 4% in after-market hours on elevated volume due to tariff uncertainties.

This has put ETFs with the largest allocation to the tech titan in focus. iShares Global Tech ETF IXN, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Technology Select Sector SPDR Fund XLK have Apple as the top firm with a double-digit allocation. 

Apple Earnings in Focus

Earnings per share came in at $1.65, outpacing the Zacks Consensus Estimate of $1.61 and increasing 7.8% from the year-ago earnings. Revenues rose 5% year over year to $95.4 billion and edged past the estimated $94.3 billion (see: all the Technology ETFs here). 

iPhone sales grew 1.9% to $46.8 billion, buoyed by demand for the more affordable iPhone 16E. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, rose 11.6% year over year to an all-time high of $26.7 billion. Mac and iPad sales rose 6.6% and 15.2% to $7.95 billion and $6.4 billion, respectively. However, revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, declined 4.9% to $7.5 billion. Mac and iPad sales rose 6.6% and 15.2% to $7.95 billion and $6.4 billion, respectively. 

The tech giant unveiled updated MacBook Air and Mac Studio models, as well as new iPad Air models featuring M3 chips during the quarter.

For the ongoing fiscal third quarter, the iPhone maker expects “low to mid-single digit” sales growth. Chief executive Tim Cook warned that Apple is likely to face a $900 million headwind as a result of tariffs in the current quarter. He added that it is “very difficult” to predict beyond June due to uncertainties surrounding the U.S.-China trade policy. 

Amid the U.S.-China trade tensions and tariffs, Apple is shifting the assembly of all iPhones for the U.S. market to India as soon as next year. About 50% of iPhones for U.S. markets are now produced in India, while iPads, Macs, Apple Watches and other products are increasingly sourced from Vietnam (read: Are Apple ETFs Ripe for a Rebound?).

The iPhone maker raised its quarterly dividend by 4% to 26 cents per share and announced a new stock-buyback plan totaling up to $100 billion.

ETFs in Focus

iShares Global Tech ETF (IXN) 

iShares Global Tech ETF provides exposure to electronics, computer software and hardware, and information technology companies by tracking the S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index. Holding 123 stocks in its basket, Apple occupies the top spot with an 18.5% share. iShares Global Tech ETF has amassed $4.4 billion in its asset base and trades in a good volume of 503,000 shares a day, on average. The expense ratio is 0.41%. 

Vanguard Information Technology ETF (VGT)

Vanguard Information Technology ETF manages $77.1 billion in its asset base and provides exposure to 310 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Apple accounts for an 18% 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 0.09%, whereas volume is solid at nearly 1 million shares. It has a Zacks ETF Rank #1 (Strong Buy).

MSCI Information Technology Index ETF (FTEC)

MSCI Information Technology Index ETF is home to 296 technology stocks with an AUM of $11.6 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 17.8% share in the basket. MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 548,000 shares a day. It has a Zacks ETF Rank #1.

iShares US Technology ETF (IYW)

iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 139 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 16.2% of the assets. iShares US Technology ETF has an AUM of $18 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 1.1 million shares a day. It has a Zacks ETF Rank #1 (read: 5 Resilient Tech ETFs Over the Past Month Amid Worsening Outlook).

Select Sector SPDR Technology ETF (XLK)

Select Sector SPDR Technology ETF is the most popular and liquid ETF in the technology space, with AUM of $65 billion and an average daily volume of 8 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 14.5%. Select Sector SPDR Technology ETF charges 8 bps in fees per year from investors and has a Zacks ETF Rank #1.

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