Top sector ETF picks for Q1 earnings include XLK, XRT, VCR, VPU, and ITB

From Nasdaq: 2024-04-08 11:05:00

The first-quarter 2023 earnings season will kick off with the banking sector reporting, showing a deceleration in earnings outlook. Total S&P 500 earnings are expected to increase by 2.5% year-over-year with higher revenues. Eight of the 16 sectors are expected to see earnings growth in the first quarter, with Technology leading at 19.5%.

Technology Select Sector SPDR Fund (XLK) is a top play in the technology sector, holding a broad array of tech securities with a focus on top firms like Microsoft and Apple. XLK has an AUM of $65 billion, low fees, and a Zacks ETF Rank #1.

The SPDR S&P Retail ETF (XRT) tracks the S&P Retail Select Industry Index, providing diversified exposure across large, mid, and small cap retail stocks with a focus on various retail industries. XRT is well-diversified, holds an AUM of $415.2 million, and has a Zacks ETF Rank #2.

The Vanguard Consumer Discretionary ETF (VCR) follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index, offering exposure to 306 consumer discretionary stocks with a low-cost, high-volume trading option. VCR is popular among investors with $5.5 billion in AUM and a Zacks ETF Rank #1.

The Vanguard Utilities ETF (VPU) tracks the MSCI US Investable Market Utilities 25/50 Index, offering exposure to electric and multi-utilities sectors and holding 65 diverse securities. With an AUM of $5 billion, VPU charges low fees and has a Zacks ETF Rank #1.

The iShares U.S. Home Construction ETF (ITB) tracks the Dow Jones U.S. Select Home Construction Index, providing exposure to U.S. residential home manufacturing companies. With an AUM of $3.1 billion, ITB holds a basket of 46 stocks and charges 40 bps in annual fees with a Zacks ETF Rank #3.



Read more at Nasdaq: 5 Favorite Sector ETFs of Q1 Earnings