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Apple Inc. (AAPL - Free Report) reported robust third-quarter fiscal 2024 results, wherein it beat both earnings and revenue estimates. The iPhone manufacturer returned to revenue growth and pinned hopes on AI for iPhone upgrades.

Apple shares rose nearly 1% in after-market hours. Investors seeking to believe in the company’s AI plan should consider ETFs that have the largest allocation to the tech titan. 

Vanguard Information Technology ETF (VGT - Free Report), MSCI Information Technology Index ETF (FTEC - Free Report), iShares US Technology ETF (IYW - Free Report), iShares Russell Top 200 Growth ETF (IWY - Free Report), and Vanguard Mega Cap Growth ETF (MGK - Free Report) all maintain Apple as the top or second firm with a double-digit allocation. Many of these ETFs boast a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy) rating.

Apple Earnings in Focus

Earnings per share came in at $1.40, beating the Zacks Consensus Estimate of $1.34 and increasing 11.1% from the year-ago earnings. Revenues rose 5% year-over-year to $85.78 billion and edged past the estimated $84.4 billion.

iPhone sales dipped 1% to $39.3 billion, a huge improvement from the 10% decline recorded in the previous quarter. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay, and Apple Care, rose 14% year-over-year to an all-time high of $24.2 billion. Revenues from Wearables, Home and Accessories, which includes Apple Watch, AirPods, HomePod, Apple TV, and Beats headphones, declined 2.2% to $8.1 billion.

Mac sales rose 2.5% to $7 billion, driven by the start of the back-to-school shopping season, while iPad sales increased 23.7% to $7.2 billion due to the release of new iPads during the quarter for the first time since 2022, which spurred a wave of upgrades.

However, Apple is still struggling in China, with sales falling 6.5% year-over-year to $14.7 billion.

The tech giant is set to launch a host of AI-theme initiatives heading into the release of its iPhone 16 later this fall. The next model, the iPhone 16, is expected to be equipped with an AI chip, which would spur iPhone upgrades in the coming months, helping the company re-emerge from a sales slowdown that has hit its China business hard.

For the ongoing fiscal fourth quarter, the iPhone maker expects overall revenues to grow at a rate similar to the 5% growth seen in the third quarter.

ETFs to Buy - Vanguard Information Technology ETF (VGT - Free Report)

The Vanguard Information Technology ETF manages $71.7 billion in its asset base and provides exposure to 320 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 16.1% share. Semiconductors, systems software, technology hardware storage & peripheral, and application software are the top four sectors. 

The ETF has an expense ratio of 0.10%, whereas volume is solid at nearly 478,000 shares.

MSCI Information Technology Index ETF (FTEC - Free Report)

The MSCI Information Technology Index ETF is home to 297 technology stocks with an AUM of $11 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 16% share in the basket. 

The ETF has an expense ratio of 0.08%, while volume is solid at 339,000 shares a day. 

iShares US Technology ETF (IYW - Free Report)

The 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 15.1% of the assets. 

The ETF has an AUM of $18 billion, and it charges 40 bps in fees and expenses. Volume is good, as it exchanges 795,000 shares a day. 

iShares Russell Top 200 Growth ETF (IWY - Free Report)  

The iShares Russell Top 200 Growth ETF offers exposure to large U.S. companies that are expected to grow at an above-average rate relative to the market. It tracks the Russell Top 200 Growth Index, holding 106 stocks in its basket. The fund has key holdings in information technology, consumer discretionary, and communications, with double-digit exposure each.

The ETF has amassed $11.5 billion in its asset base, and it trades in an average daily volume of 375,000 shares. It also has an expense ratio of 0.20%.

Vanguard Mega Cap Growth ETF (MGK - Free Report)

The Vanguard Mega Cap Growth ETF offers diversified exposure to the largest growth stocks in the U.S. market. It tracks the CRSP US Mega Cap Growth Index and holds 71 securities in its basket, with Apple accounting for 12.4% of the total assets. 

The ETF charges 7 bps in annual fees, and it trades in a good volume of around 319,000 shares a day on average. The fund also has an AUM of $20.8 billion.

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