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4 Best ETF Charts of Q4 Earnings

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The Q4 reporting cycle has effectively come to an end. Earnings of 96.4% of the S&P 500 market capitalization that has been reported so far is up 3.6% on 3% higher revenues, with 79.3% beating EPS estimates and 76.4% beating revenue estimates.

This is an astonishing performance when compared to the pre-earnings season expectation of an 11% decline. Additionally, it reflects a solid improvement from the same group of companies in the first three quarters (read: 5 ETFs to Ride On the Rotation to Cyclical Sectors).

Given this, several equity ETFs have impressed with their performances and generated handsome returns over the trailing one-month period. While there are winners in many corners of the space, below are four ETFs that have buoyed up on strong earnings results. In addition, we have given a chart for their one-month performance and compared them with the broad market fund (SPY - Free Report) and the broad sector.

First Trust Nasdaq Bank ETF (FTXO - Free Report)

This fund measures the performance of U.S. companies within the banking industry. It has gained 15.4% on better-than-expected earnings and has a Zacks ETF Rank #2 (Buy). Total earnings for 96.8% of the sector’s market capitalization that have been reported so far are up 14.3% on 1.6% higher revenues. This reflects a solid improvement considering the earnings decline of 9.5% in Q4, 45.3% in Q2 and 32.4% in Q1. Additionally, the earnings and revenue beat ratio of 80% and 73.3% also came higher than the other three historical quarters. Further, the steepening yield curve is acting as a tailwind for this fund (read: Here's Why You Should Buy Bank ETFs Now).

First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report)

The industrial sector has also performed well in Q4 earnings season with the companies reporting 13.8% earnings growth and 1.2% revenue growth. AIRR is leading the pack with gains of 8.2%. This ETF tracks the Richard Bernstein Advisors American Industrial Renaissance Index, which measures the performance of U.S. small and mid-cap companies in the industrial and community banking sectors. It has a Zacks ETF Rank #3 (Hold).

Invesco DWA Technology Momentum ETF (PTF - Free Report)

This fund follows the Dorsey Wright Technology Technical Leaders Index, and provides exposure to companies that are showing relative strength (momentum). Total earnings for 91.3% of the sector capitalization are up 20.7% on 14.8% higher revenues, with 85.9% beating EPS estimates and 85.9% beating revenue estimates. The Q4 earnings performance represents a notable improvement over the other recent periods. PTF has gained 4.4% in a month despite the recent broad sector sell-off. It has a Zacks ETF Rank #3 (read: 5 Hot Tech ETFs to Tap on Beaten Down Prices).

Invesco Dynamic Building & Construction ETF (PKB - Free Report)

This fund provides exposure to the companies engaged in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines, and airports. It has risen 4.8% in a month and carries a Zacks ETF Rank #3. Solid results drove the performance of this fund amid volatility in the market last month as earnings and revenue growth turned out the second strongest and the revenue beat ratio was the highest for Q4 season (read: Guide to Homebuilding ETFs).

Total earnings for 96.6% of the sector’s market capitalization that have been reported so far are up 32% on 13.3% higher revenues. Earnings and revenue beat ratios are 92.3% and 100%, respectively.

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