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Apple Inc. (AAPL - Free Report) has joined the bullish trend of the world’s other largest mega-cap technology stocks that reported better-than-feared results and lifted market sentiments. The tech titan reported solid second-quarter fiscal 2023 results by beating estimates on both earnings and revenues, powered by a surprise boost in iPhone sales.

Apple shares rose 2.5% in after-market hours on elevated volume, putting ETFs having the largest allocation to the tech titan in focus. Technology Select Sector SPDR Fund (XLK - Free Report), Vanguard Information Technology ETF (VGT - Free Report), MSCI Information Technology Index ETF (FTEC - Free Report) and iShares US Technology ETF (IYW - Free Report) have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #2 (Buy).

Apple Earnings in Focus

Earnings per share came in at $1.52, beating the Zacks Consensus Estimate by 8 cents and flat year over year. Revenues dropped 3% year over year to $94.8 billion and edged past the estimated $93.3 billion. This marks the second consecutive quarter of revenue decline.

iPhone sales grew 2% to $51.3 billion and services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, soared 5.5% year over year to $20.9 billion. Both iPhone sales and service revenues hit a new record high. However, revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, slipped 0.6% to $8.8 billion. Mac sales dropped 31% to $7.2 billion, while iPad sales declined 13% to $6.7 billion.

The tech giant expects fiscal third-quarter revenue to be “similar” to the second quarter.

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 64 securities in its basket, with Apple making up for a 23.8% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, and semiconductors & semiconductor equipment.

Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $43 billion and an average daily volume of 7 million shares. The fund charges 10 bps in fees per year.

Vanguard Information Technology ETF (VGT)

Vanguard Information Technology ETF manages about $46 billion in its asset base and provides exposure to 364 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.7% share. Technology hardware storage & peripheral, systems software, semiconductors and application software are the top four sectors.

Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 518,000 shares.

MSCI Information Technology Index ETF (FTEC)

MSCI Information Technology Index ETF is home to 361 technology stocks, with AUM of $6 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 23.4% allocation.

MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 213,000 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 139 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 19.9% of the assets.

iShares Dow Jones US Technology ETF has AUM of $10.6 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 644,000 shares a day.

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