Wall Street had a volatile ride last week. While inflationary pressures sparked concern over lofty valuations, pushing the tech-heavy Nasdaq Composite down, the stronger-than-expected corporate profits fueled the Dow Jones and the S&P 500 to new highs.
Notably, the Dow jumped 2.7% — its biggest weekly percentage gain since March while the S&P 500 gained 1.2% — its best week since mid-April. The Nasdaq shed 1.5% last week.
The corporate results have turned out better than expected with all-around strength and momentum. Earnings from the
425 S&P members that reported Q1 results so far are up 47% on 10.3% higher revenues, with 85.9% beating EPS estimates and 76.7% beating revenue estimates. Both earnings and revenue growth are tracking above the group’s recent trend, including the pre-pandemic period. In fact, the overall Q1 total earnings are on track to reach a new all-time quarterly record. Further, estimates for the current and coming quarters are steadily going up — a trend that has been in place since last summer. The positive revisions’ trend is likely to accelerate in the coming months as we start looking past the pandemic (read: ETFs to Play the Strong Q1 Earnings Trend). According to Refinitiv data, the S&P 500 earnings are now estimated to have increased 50.4% in the first quarter from a year ago, which would be the highest growth rate since the first quarter of 2010. The Street data shows that, with 88% of the S&P 500 reporting March quarter earnings, profits are expected to rise 50.4% from last year to a share-weighted $407.1 billion. Against such a backdrop, a few ETFs gained handsomely last week. Here are five of them from different corners of the market: VanEck Vectors Oil Services ETF ( OIH Quick Quote OIH - Free Report) - Up 19% The energy sector was the biggest gainer last week as oil price rise on growing optimism surrounding stronger summer demand on the economic reopening in the United States and Europe though rising COVID-19 infections in India remained a concern. This fund tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. With AUM of $1.5 billion, it holds 25 stocks in its basket and charges 35 bps in annual fees. The product trades in volume of 422,000 shares per day and has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook. North Shore Global Uranium Mining ETF ( URNM Quick Quote URNM - Free Report) – Up 16.2% Uranium miners got a boost from improving supply/demand dynamics as well as push for more clean energy projects. Additionally, most of the stocks are undervalued, making them a bargain hunt for investors. This ETF provides exposure to companies that are involved in the mining, exploration, development, and production of uranium, as well as companies that hold physical uranium or other non-mining assets. It follows the North Shore Global Uranium Mining Index, holding 36 stocks in its basket and charges investors 85 bps in annual fee. The ETF has accumulated $264.7 million in its asset base and trades in a moderate volume of 134,000 shares per day on average (read: 7 ETFs Up At Least 5% Last Week). Global X Copper Miners ETF ( COPX Quick Quote COPX - Free Report) – Up 12.3% Strong prospects over global economic growth and the resultant bets for higher demand have been pushing the red metal higher. COPX offers global access to a broad range of copper mining companies. It tracks the Solactive Global Copper Miners Total Return Index and holds 34 stocks in its basket. Canadian firms take the largest share at 36.6% while China and United States round off the next two spots. The product has managed $1 billion in its asset base while charging 65 bps in fees per year. It trades in a good volume of 579,000 shares a day on average (read: Copper at 10-Year High: Are ETFs Headed for Further Rally?). VanEck Vectors Steel ETF ( SLX Quick Quote SLX - Free Report) - Up 11.7% Steel prices rose last week following China’s step to tighten controls on steel capacity, in an effort to curb pollution in key areas as well as reduce “blind investments and disorderly constructions.” This fund provides a pure-play exposure to a small basket of 25 stocks by tracking the NYSE Arca Steel Index. American firms dominate the fund’s returns at 32.5%, followed by Brazil (25.3%) and Australia (15%). The ETF has amassed $226.4 million in its asset base and charges 56 bps in fees from investors. It trades in a moderate volume of 129,000 shares a day on average. ETFMG Prime Junior Silver ETF ( SILJ Quick Quote SILJ - Free Report) – Up 11.2% The rally in silver price resumed last week on fresh positions built by participants on a positive domestic trend. SILJ provides direct exposure to the silver mining exploration and production industry by tracking the Prime Junior Silver Miners & Explorers Index. It holds 50 stocks in its basket with Canadian firms taking the lion’s share at 74.8%, while the United States takes a double-digit 12.3% exposure. The fund has managed assets worth $874.1 million and trades in good volume of nearly 129,000 shares a day. It charges 69 bps in annual fees. Want key ETF info delivered straight to your inbox?
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