4 Hot ETF Charts Of Q2 Earnings Season

The Q1 earnings season has reached its tail end with 92.6% of the S&P 500 index market capitalization that has reported so far up 10.8% on 5.8% revenue growth with 74.3% beating EPS estimates and 68% coming ahead of top-line expectations.  

Earnings and revenue growth rates are lower than the prior quarter for the same group of companies. However, total Q2 earnings in dollar terms are on track to reach a new quarterly all-time record for the index, surpassing the previous record achieved in the fourth quarter of 2016. Revenue surprise is also tracking above historical periods.

Given this, several equity ETFs have impressed with their performances and have generated handsome returns over the trailing one month even after being hit by the North Korean tension. While there are winners in many corners of the space, below are five ETFs that buoyed up on robust 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.

ARK Innovation ETF (ARKK - Free Report)

This is an actively managed fund focusing on companies that are expected to benefit from the development of new products or services, technological improvement and advancements in genomic revolution, Web x.0 and industrial innovation. An amazing surge in bitcoin prices and incredible earnings from companies like AthenaHealth (ATHN - Free Report) , Illimina (ILMN - Free Report) and Stratasys (SSYS - Free Report) provided a boost to the fund’s portfolio. Tesla (TSLA - Free Report) also added to the strength on increased production outlook. These stocks make up for a substantial 28.4% of assets, leading to a 6.7% rise in ARKK over the past one month.

PowerShares S&P SmallCap Utilities Portfolio (PSCU - Free Report)

This fund targets the small cap segment of the utilities and telecommunication services sectors. Total earnings for the utilities sector is up 7% on 7.7% higher revenues with a blended beat of 41.4%. Though the blended beat seems encouraging, price impact in response to earnings is much better when compared to negative price reaction for many other sectors. The stocks saw a modest rise of 0.3%, only behind construction. Given this, PSU is leading the utilities sector, gaining nearly 6.5%.

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