2 ETFs Riding High on Q4 Earnings Results - ETF News And Commentary
February 05 2014 - 1:00PM
Zacks
The Q4 2013 earnings season has seen a weak start but is gradually
showing impressive numbers that could touch the all-time quarterly
high. The quarter’s earnings growth is nearing the highest level
seen in 2013.
Total earnings for the S&P 500 companies that have reported so
far are up 12% on an annual basis with beat ratio of 70.8% while
revenues increased 1.8% with a beat ratio of 51.1% (read: Focus on
Earnings with These ETFs).
From a sector perspective, aerospace is the star performer with a
beat ratio of 100% for earnings and 62.5% for revenues. The medical
sector follows closely with earnings and beat ratio of 87% and
56.5%, respectively, as per the Zacks Earnings Trends.
The basic materials space is a key contributor to earnings,
accounting for 40.7% of overall growth. On the revenue front, the
homebuilding and construction sector has contributed the maximum
(18.5%) to quarterly growth.
Considering all the key metrics, a few equity ETFs have impressed
with their performances and generated solid returns from the
year-to-date look. While there are winners in many corners of the
space, below we highlight the top ETFs that have performed well on
robust earnings (read: 3 ETFs to Watch for Big Moves This
Year):
PureFunds ISE Junior Silver ETF
(SILJ)
SILJ is the biggest beneficiary not only in the material space but
also in the broad ETF world. This product provides a true small cap
play on the silver mining space.
The fund has managed assets worth $1.7 million and trades in a
paltry volume of less than 6,000 shares a day. The ETF tracks the
ISE Junior Silver Small Cap Miners/Explorers Index and charges 69
bps in annual fees.
In total, the fund holds about 24 companies with the largest
allocation going to the top three firms –
Fortuna Silver
Mines (FSM),
Endeavour Silver (EXK) and
Silvercorp Metal (SVM) –each making up nearly 12%.
In terms of country exposure, Canadian firms dominate the fund at
74% while the U.S. securities make up for a 25% share. SILJ has
added about 15% since the start of 2014 (read: 3 Sector ETFs
Surging to Start 2014).
SPDR S&P Biotech ETF
(XBI)
This fund provides exposure to the biotech segment of the broad
healthcare space by tracking the S&P Biotechnology Select
Industry Index. The product has roughly $1.2 million in AUM and
trades about 336,000 shares in volume a day, while charging only 35
basis points a year. The ETF is slightly tilted toward small caps
which account for about 58% of the portfolio while mid and large
caps take the rest.
Holding 71 securities in its basket, the product is largely
concentrated on the top firm –
Intercept Pharmaceuticals
(ICPT) – with 6.03% allocation. Other securities do not
account for more than 2.41% of assets. The fund is up over 10% so
far this year and has a Zacks ETF Rank of 1 or ’Strong Buy’ with
‘High’ risk outlook.
Bottom Line
These products are clearly outpacing the broad market funds by wide
margins and will remain the forerunners if the current trends
continue in the weeks ahead. They could also be funds to focus on
for those worried about the broad market's direction, as they have
proven to be resilient in what has otherwise been a very difficult
time for stocks.
Want the latest recommendations from Zacks Investment Research?
Today, you can download
7 Best Stocks for the Next 30
Days.
Click to get this free report
>>
FORTUNA SILVER (FSM): Free Stock Analysis Report
INTERCEPT PHARM (ICPT): Free Stock Analysis Report
PF ISE-JS SC ME (SILJ): ETF Research Reports
SPDR-SP BIOTECH (XBI): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days. Click
to get this free report
Amplify Junior Silver Mi... (AMEX:SILJ)
Historical Stock Chart
From Jul 2024 to Aug 2024
Amplify Junior Silver Mi... (AMEX:SILJ)
Historical Stock Chart
From Aug 2023 to Aug 2024