A Spread of Top S&P 500 ETFs to Tap Solid Q2 Earnings Growth

After taking a hit early last week on concerns about the spread of the Delta variant of COVID-19, the three major indices bounced back strongly and ended the week at new highs. This was primarily driven by a spate of upbeat earnings and the continued optimism.

In particular, strong earnings from social media companies like Twitter and Snapchat (SNAP) bolstered investors’ mood. Earnings from 20.6% of the S&P 500 companies reported so far are up 117.6% on 18.9% revenues with 90.3% beating EPS estimates and 85.4% beating revenue estimates. This reflects strong momentum on the revenue front both in terms of growth and the beat percentage (read: SNAP Skyrockets Post Q2 Earnings: ETFs to Play).

With the big five tech titans — Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Apple (AAPL - Free Report) , Facebook and Amazon (AMZN - Free Report) — scheduled to report this week, the solid trend is likely to continue. Total Q2 earnings from the group of these five companies, which combined now account for 23.3% of the total market capitalization of the S&P 500 Index, are expected to be up 48.4% on revenue growth of 29.2%.

Overall, combining the actual results for the index members that have reported with estimates for the still-to-come companies, total S&P 500 earnings are expected to be up 71.3% from the same period last year on 19.4% higher revenues, with the growth rate steadily going up as companies report better-than-expected results.

While the strong earnings trend has pushed many ETFs to new highs, we have highlighted those funds that directly or indirectly track the S&P 500 Index. Any of these could be a compelling choice to play the upcoming earnings given that they each have a Zacks ETF Rank #2 (Buy):

SPDR S&P 500 ETF Trust (SPY - Free Report)

The ETF tracks the S&P 500 and holds 505 stocks in its basket. It is the ultra-popular and most actively traded fund with AUM of $377.2 billion and an average daily volume of around 56.7 billion. The fund charges 9 bps in annual fees.

iShares Core S&P 500 ETF (IVV - Free Report)

With AUM of $293.8 billion, IVV is a lot smaller than SPY and less liquid, trading in an average daily volume of 4 million. It charges just 3 bps in annual fees, 6 bps less than the State Street product.

Vanguard S&P 500 ETF (VOO - Free Report)

This ETF also directly tracks the S&P 500 Index and holds 507 stocks in its basket. It has amassed $240.7 billion in its asset base and charges investors 3 bps in annual fees. The product trades in an average daily volume of 3.5 million shares (read: Will the Hot ETFs of First-Half 2021 Continue to Sizzle?).

SPDR Portfolio S&P 500 ETF (SPLG)

This fund also follows the S&P 500 Index and holds 506 stocks in its basket with 0.03% in expense ratio. It has amassed $11.3 billion in its asset base and trades in solid volume of 1.7 million shares a day on an average.

Invesco S&P 500 Top 50 ETF (XLG - Free Report)

This fund follows the S&P 500 Top 50 ETF Index, which measures the cap-weighted performance of 50 of the largest companies on the S&P 500 Index, reflecting the performance of the U.S. mega-cap stocks. It has been able to manage assets worth $2 billion but trades in a small volume of about 30,000 shares a day on average. Expense ratio comes in at 0.20%.

SPDR S&P 500 Growth ETF (SPYG)

This ETF offers exposure to 239 stocks that exhibit the strongest growth characteristics by tracking the S&P 500 Growth Index. It has AUM of $13.3 billion in its asset base and trades in an average daily volume of 1.9 million shares (read: A Quick Guide to the 25 Cheapest ETFs).

Invesco S&P 500 Pure Growth ETF (RPG - Free Report)

This ETF also follows the S&P 500 Pure Growth Index, holding 73 stocks in its basket. It has amassed $2.8 billion in its asset base and trades in a moderate average volume of around 44,000 shares a day. The product charges 35 bps in fees a year from investors.

Vanguard S&P 500 Growth ETF (VOOG)

This fund tracks the S&P 500 Growth Index, holding 239 stocks in its basket. With AUM of $2.9 billion, it has an expense ratio of 0.10% and trades in an average daily volume of 87,000 shares.

iShares S&P 500 Growth ETF (IVW - Free Report)

With AUM of $35.3 billion, this fund tracks the S&P 500 Growth Index and holds 239 stocks in its basket. It charges 18 bps in annual fees and trades in an average daily volume of 1.7 million shares.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>