4 Best ETF Charts Of Q4 Earnings

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The Q4 reporting cycle has effectively come to an end. Earnings of 96.4% of the S&P 500 market capitalization that has been reported so far is up 3.6% on 3% higher revenues, with 79.3% beating EPS estimates and 76.4% beating revenue estimates.

This is an astonishing performance when compared to the pre-earnings season expectation of an 11% decline. Additionally, it reflects a solid improvement from the same group of companies in the first three quarters.

Given this, several equity ETFs have impressed with their performances and generated handsome returns over the trailing one-month period. While there are winners in many corners of the space, below are four ETFs that have buoyed up on strong earnings results. In addition, we have given a chart for their one-month performance and compared them with the broad market fund (SPY - Free Report) and the broad sector.

First Trust Nasdaq Bank ETF (FTXO - Free Report)

This fund measures the performance of U.S. companies within the banking industry. It has gained 15.4% on better-than-expected earnings and has a Zacks ETF Rank #2 (Buy). Total earnings for 96.8% of the sector’s market capitalization that have been reported so far are up 14.3% on 1.6% higher revenues. This reflects a solid improvement considering the earnings decline of 9.5% in Q4, 45.3% in Q2, and 32.4% in Q1. Additionally, the earnings and revenue beat ratio of 80% and 73.3% also came higher than the other three historical quarters. Further, the steepening yield curve is acting as a tailwind for this fund.

First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report)

The industrial sector has also performed well in Q4 earnings season with the companies reporting 13.8% earnings growth and 1.2% revenue growth. AIRR is leading the pack with gains of 8.2%. This ETF tracks the Richard Bernstein Advisors American Industrial Renaissance Index, which measures the performance of U.S. small and mid-cap companies in the industrial and community banking sectors. It has a Zacks ETF Rank #3 (Hold).

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