Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: First Trust NASDAQ, Guggenheim Solar, iShares U.S. Aerospace, Spirited Funds and iShares U.S. Consumer

Read MoreHide Full Article

For Immediate Release

Chicago, IL – March 6, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report) , Guggenheim Solar ETF (TAN - Free Report) , iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Spirited Funds/ETFMG Whiskey & Spirits ETF and iShares U.S. Consumer Services ETF (IYC - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Trump Tariffs Put These Sector ETFs in Focus

Trump’s announcement that the United States will impose a 25% tariff on steel imports and a 10% tariff on aluminum imports has become the latest cause of concern for the U.S. economy and Wall Street. The tariffs are likely to result in an increase in raw material cost for manufacturers that use these metals.

Against this backdrop, with the help of an article published on npr.org, we highlight some sectors that could be impacted the most from the tariffs (read: Watch These ETFs as Trade War Risks Rise).

Auto

Both steel and aluminum are vital to the production of cars and trucks sold in America and would push up the sale prices of those vehicles considerably. The American Automotive Policy Council believes that the change would put the U.S. auto industry at a "competitive disadvantage."

However, the price hike won’t be the same for all. In this situation, First Trust NASDAQ Global Auto Index Fund should be monitored closely. However, since the fund invests only 19.67% in the United States, severe threat to the product is unexpected (read: ETFs in Focus Post Automobile Earnings).

Alternative Energy

Solar projects, wind turbines and energy storage units are also likely to be pricier. The tariff could result in a hike in the cost of offshore platforms and pipelines. In any case, the Trump administration's 30% tariff on imported solar cells and modules was put into effect this year (read: Trump's Import Tariffs: ETF & Stocks in Focus).

Now with extra price increases on steel and aluminum, “which are used in ground-mount and rooftop solar racking systems,” the sector could be hit hard. Alternative ETFs including Guggenheim Solar ETF should thus be followed with extra caution (read: Alternative Energy ETFs to Gain From First Solar Q4 Results).

Aerospace

U.S. aerospace industry thrives on steel and aluminum imports to construct aircraft. About 80% of an aircraft is made of aluminum. Aerospace and defense ETFs like iShares U.S. Aerospace & Defense ETF may also feel the pinch.

Beer

Last but not least, how can investors forget the beer industry? Imported aluminum is used to make beer cans. The announcement puts Spirited Funds/ETFMG Whiskey & Spirits ETF in focus.

Consumer

Along with most market watchers, we too believe that companies will try to pass on some cost escalation to consumers. As a result, consumer ETFs like iShares U.S. Consumer Services ETF may get slightly hurt.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com                                                   

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.