5 Sector ETFs That Gained Double-Digits Last Week

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Wall Street had a volatile ride last week. While inflationary pressures sparked concern over lofty valuations, pushing the tech-heavy Nasdaq Composite down, the stronger-than-expected corporate profits fueled the Dow Jones and the S&P 500 to new highs.

Notably, the Dow jumped 2.7% — its biggest weekly percentage gain since March while the S&P 500 gained 1.2% — its best week since mid-April. The Nasdaq shed 1.5% last week.

The corporate results have turned out better than expected with all-around strength and momentum. Earnings from the 425 S&P members that reported Q1 results so far are up 47% on 10.3% higher revenues, with 85.9% beating EPS estimates and 76.7% beating revenue estimates. Both earnings and revenue growth are tracking above the group’s recent trend, including the pre-pandemic period.

In fact, the overall Q1 total earnings are on track to reach a new all-time quarterly record. Further, estimates for the current and coming quarters are steadily going up — a trend that has been in place since last summer. The positive revisions’ trend is likely to accelerate in the coming months as we start looking past the pandemic.

According to Refinitiv data, the S&P 500 earnings are now estimated to have increased 50.4% in the first quarter from a year ago, which would be the highest growth rate since the first quarter of 2010. The Street data shows that, with 88% of the S&P 500 reporting March quarter earnings, profits are expected to rise 50.4% from last year to a share-weighted $407.1 billion.

Against such a backdrop, a few ETFs gained handsomely last week. Here are five of them from different corners of the market:

VanEck Vectors Oil Services ETF (OIH - Free Report) - Up 19%

The energy sector was the biggest gainer last week as oil price rise on growing optimism surrounding stronger summer demand on the economic reopening in the United States and Europe though rising COVID-19 infections in India remained a concern. This fund tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. With AUM of $1.5 billion, it holds 25 stocks in its basket and charges 35 bps in annual fees. The product trades in volume of 422,000 shares per day and has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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