Q2 Earnings Effect: 5 Must-Watch ETF Charts

The Q2 reporting cycle has effectively come to an end, with earnings of 98.7%,of the S&P 500 market capitalization that has reported so far is down 32.3% on 9.5% lower revenues, with 80.4% beating EPS estimates and 64.0% beating revenue estimates. This is the lowest earnings growth pace since the last earnings downturn following the 2008 recession. However, the proportion of these companies beating consensus estimates, particularly EPS estimates, is tracking above historical trends.

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 five ETFs that 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 and the broad sector.

Invesco Solar ETF TAN

This ETF offers companies in the solar energy industry. It has gained 22.3% in a month on strong Q2 earnings. In particular, upbeat earnings from First Solar FSLR, SolarEdge Technologies SEDG, Enphase Energy ENPH, SunPower Corp. SPWR and Canadian Solar CSIQ led to a strong rally in the ETF. TAN has a Zacks ETF Rank #2 (Buy) with a High risk outlook. Overall, the solar industry came up with a 45% earnings beat in Q2.

MicroSectors FANG+ ETN FNGS  

This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 stocks in equal weights of 10% each in its basket. A slew of strong earnings results from the five tech giants in the index such as Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Facebook FB has strongly contributed to overall technology earnings. Other stocks in the index such as Tesla TSLA, and Nvidia NVDA also came up with solid results. All these led to strong trading in the ETF, which is up 18.1% in a month.

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