Apple Inc. AAPL climbed 8.9% in Thursday’s trading session to record its best single-day performance in more than two years amid a strong broad-market rally. This represents Apple’s largest gain since Jul 31, 2020, according to Dow Jones Market Data.
As such, ETFs having the largest allocation to the tech titan enjoyed a huge surge on the day. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW gained more than 8% each. These funds have Apple as the top firm with a double-digit allocation and carry a Zacks Rank #2 (Buy).
The share price surge led to a record market value gain of $190.9 billion for Apple. This marks the biggest one-day market-cap surge ever for the company, according to Bloomberg data. Currently, Apple has a $2.34 trillion in market capitalization.
As softer-than-expected inflation data fueled some optimism, the broad stock market saw a furious rally. The consumer price index rose 7.7% annually in October after rising 8.2% at the end of September, while the core consumer price index, which strips out volatile components such as food and energy prices, climbed 6.3% year over year, down from 6.6% in September. Notably, Wall Street stocks recorded their best one-day performance since 2020.
Further, Apple is one of the big techs that came up with solid earnings results last month. Earnings per share came in at $1.29, outpacing the Zacks Consensus Estimate by 3 cents and increasing 4% from the year-ago earnings. Revenues increased 8% year over year to a record $90.1 billion and edged past the estimate of $88.5 billion (read: Apple Notches Best Day Since April 2020: 4 ETFs to Taste).
iPhone sales grew 10% to a record $42.6 billion. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, soared 5% year over year to a record $19.2 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, rose 10% to $9.7 billion. Mac sales jumped 25% to $11.5 billion, while iPad sales dropped 13% to $7.2 billion.
ETFs to Buy
Technology Select Sector SPDR Fund (XLK)
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 a 22.5% 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 $37.5 billion and an average daily volume of 7.9 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $38.8 billion in its asset base and provides exposure to 371 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.4% share (see: all the Technology ETFs here).
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 876,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 381 technology stocks with AUM of $4.9 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 23.2% allocation.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 196,000 shares a day.
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 143 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up for 19% of the assets (read: Top-Ranked ETFs That Beat the Market in October).
iShares Dow Jones US Technology ETF has AUM of $7.7 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges nearly 1.2 million shares a day.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
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