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Wall Street wrapped up a winning April buoyed by better-than-expected earnings and easing of banking fears. Cooling inflation added to the strength.
While most of the segments rallied last month, ALPS Medical Breakthroughs ETF (SBIO - Free Report) , VanEck Vectors Digital Transformation ETF (DAPP - Free Report) , iShares U.S. Home Construction ETF (ITB - Free Report) , Roundhill Sports Betting & iGaming ETF (BETZ - Free Report) and US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) from different corners of the market led the way higher.
The Dow Jones Industrial Average logged its best monthly gain since January, rising 1.7%, while the S&P 500 rose 1.5%. Though the tech-heavy Nasdaq Composite Index finished April marginally in the red, it posted its highest close of 2023.
The picture emerging from the Q1 earnings season continues to be one of resilience and stability, with companies not only beating estimates but also providing a good-enough outlook in an uncertain macro environment. Per the latest Earnings Trends report, the companies that have reported results so far are down 1.2% on 6.5% higher revenues, with 81.1% beating EPS estimates and 75% beating revenue estimates (read: 5 ETFs to Bet on From the Favorite Sectors for Q1 Earnings).
Majority of companies that have reported so far this season have beaten expectations, including tech behemoths Microsoft (MSFT), Alphabet (GOOGL) and Meta Platforms (FB). They have an outsize effect on market indexes because of their massive size. Meanwhile, two energy behemoths — Exxon Mobil (XOM) and Chevron (CVX) — are reaping profits not seen since 2008. Both the oil majors collectively posted $18 billion in first-quarter profits, showing resilience even as oil and natural gas prices declined.
However, growth in U.S. economy slowed in the first quarter with GDP rising only 1.1% annually. This followed GDP growth of 2.6% in the fourth quarter.
ETFs in Focus
We have profiled the above-mentioned ETFs in detail below:
ALPS Medical Breakthroughs ETF (SBIO - Free Report) – Up 12.6%
ALPS Medical Breakthroughs ETF provides exposure to small- and mid-cap stocks of biotechnology companies that have one or more drugs in either Phase II or Phase III of the FDA clinical trials by tracking S-Network Medical Breakthroughs Index. It holds 117 securities in its basket.
ALPS Medical Breakthroughs ETF charges 50 bps in fees per year from its investors and trades in a moderate average daily volume of about 11,000 shares. It has AUM of $104.7 million in its asset base and carries a Zacks ETF Rank #3 (Hold) with a High risk outlook.
VanEck Vectors Digital Transformation ETF (DAPP - Free Report) – Up 7.1%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 20 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 94,000. DAPP has accumulated $33.1 million in its asset base.
iShares U.S. Home Construction ETF (ITB - Free Report) – Up 6.9%
iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With an AUM of $1.7 billion, it holds a basket of 48 stocks with a heavy concentration on the top two firms (read: Could Housing ETFs Spring Up in the Key Selling Season?).
iShares U.S. Home Construction ETF charges 39 bps of annual fees and trades in a heavy volume of around 2.7 million shares a day on average. iShares U.S. Home Construction ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
Roundhill Sports Betting & iGaming ETF is designed to offer retail and institutional investors global exposure to sports betting and iGaming industries by tracking the Roundhill Sports Betting & iGaming Index. Sportsbook comprises 38.1% share while casino, iGaming, and technology round off the next three spots with a double-digit exposure each.
Roundhill Sports Betting & iGaming ETF holds 39 stocks in its basket and has amassed $131.4 million in its assets base. It charges 75 bps in annual fees and trades in an average daily volume of 25,000 shares.
US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) – Up 6.3%
US Global GO GOLD and Precious Metal Miners ETF provide investors with access to companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means. It tracks the U.S. Global Go Gold and Precious Metal Miners Index, holding 29 stocks in its basket. Canada takes the lion’s share at 55.2%, followed by South Africa (20.9%), Australia (12.3%) and the United States (9.7%) (read: Why Investors Are Flocking to Gold ETFs).
US Global GO GOLD and Precious Metal Miners ETF has amassed $103.6 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 33,000 shares per day on average.
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5 Sector ETFs That Beat the Market in April
Wall Street wrapped up a winning April buoyed by better-than-expected earnings and easing of banking fears. Cooling inflation added to the strength.
While most of the segments rallied last month, ALPS Medical Breakthroughs ETF (SBIO - Free Report) , VanEck Vectors Digital Transformation ETF (DAPP - Free Report) , iShares U.S. Home Construction ETF (ITB - Free Report) , Roundhill Sports Betting & iGaming ETF (BETZ - Free Report) and US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) from different corners of the market led the way higher.
The Dow Jones Industrial Average logged its best monthly gain since January, rising 1.7%, while the S&P 500 rose 1.5%. Though the tech-heavy Nasdaq Composite Index finished April marginally in the red, it posted its highest close of 2023.
The picture emerging from the Q1 earnings season continues to be one of resilience and stability, with companies not only beating estimates but also providing a good-enough outlook in an uncertain macro environment. Per the latest Earnings Trends report, the companies that have reported results so far are down 1.2% on 6.5% higher revenues, with 81.1% beating EPS estimates and 75% beating revenue estimates (read: 5 ETFs to Bet on From the Favorite Sectors for Q1 Earnings).
Majority of companies that have reported so far this season have beaten expectations, including tech behemoths Microsoft (MSFT), Alphabet (GOOGL) and Meta Platforms (FB). They have an outsize effect on market indexes because of their massive size. Meanwhile, two energy behemoths — Exxon Mobil (XOM) and Chevron (CVX) — are reaping profits not seen since 2008. Both the oil majors collectively posted $18 billion in first-quarter profits, showing resilience even as oil and natural gas prices declined.
However, growth in U.S. economy slowed in the first quarter with GDP rising only 1.1% annually. This followed GDP growth of 2.6% in the fourth quarter.
ETFs in Focus
We have profiled the above-mentioned ETFs in detail below:
ALPS Medical Breakthroughs ETF (SBIO - Free Report) – Up 12.6%
ALPS Medical Breakthroughs ETF provides exposure to small- and mid-cap stocks of biotechnology companies that have one or more drugs in either Phase II or Phase III of the FDA clinical trials by tracking S-Network Medical Breakthroughs Index. It holds 117 securities in its basket.
ALPS Medical Breakthroughs ETF charges 50 bps in fees per year from its investors and trades in a moderate average daily volume of about 11,000 shares. It has AUM of $104.7 million in its asset base and carries a Zacks ETF Rank #3 (Hold) with a High risk outlook.
VanEck Vectors Digital Transformation ETF (DAPP - Free Report) – Up 7.1%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 20 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 94,000. DAPP has accumulated $33.1 million in its asset base.
iShares U.S. Home Construction ETF (ITB - Free Report) – Up 6.9%
iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With an AUM of $1.7 billion, it holds a basket of 48 stocks with a heavy concentration on the top two firms (read: Could Housing ETFs Spring Up in the Key Selling Season?).
iShares U.S. Home Construction ETF charges 39 bps of annual fees and trades in a heavy volume of around 2.7 million shares a day on average. iShares U.S. Home Construction ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
Roundhill Sports Betting & iGaming ETF (BETZ - Free Report) – Up 6.3%
Roundhill Sports Betting & iGaming ETF is designed to offer retail and institutional investors global exposure to sports betting and iGaming industries by tracking the Roundhill Sports Betting & iGaming Index. Sportsbook comprises 38.1% share while casino, iGaming, and technology round off the next three spots with a double-digit exposure each.
Roundhill Sports Betting & iGaming ETF holds 39 stocks in its basket and has amassed $131.4 million in its assets base. It charges 75 bps in annual fees and trades in an average daily volume of 25,000 shares.
US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) – Up 6.3%
US Global GO GOLD and Precious Metal Miners ETF provide investors with access to companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means. It tracks the U.S. Global Go Gold and Precious Metal Miners Index, holding 29 stocks in its basket. Canada takes the lion’s share at 55.2%, followed by South Africa (20.9%), Australia (12.3%) and the United States (9.7%) (read: Why Investors Are Flocking to Gold ETFs).
US Global GO GOLD and Precious Metal Miners ETF has amassed $103.6 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 33,000 shares per day on average.