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The Zacks Analyst Blog Highlights: WCLD, ICLN, WFH, ITB and PSCD
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For Immediate Release
Chicago, IL – September 14, 2021 – 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: WisdomTree Cloud Computing Fund (WCLD - Free Report) , iShares Global Clean Energy ETF (ICLN - Free Report) , Direxion Work From Home ETF (WFH - Free Report) , iShares U.S. Home Construction ETF (ITB - Free Report) and Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) .
Here are highlights from Monday’s Analyst Blog:
5 Top-Ranked ETFs to Buy on the Dip
Amid global growth concerns due to the rise in Delta variant cases of COVID-19, Wall Street saw tumultuous trading last week. The S&P 500 and Dow Jones wrapped up its worst weekly performance since June, losing 1.7% and 2.1% while the tech-heavy Nasdaq Composite Index posted its worst week since July, sliding 1.6%.
The United States is now averaging nearly 162,000 new COVID-19 cases over the last seven days. The latest surge in infections has started to take a toll on economic growth. According to the Federal Reserve's Beige Book released last week, economic growth slowed down to a moderate pace in early July through August as the Delta variant hit the dining, travel, and tourism industry (read: Delta Variant to Spark Rally in Stay-At-Home ETFs).
Additionally, signs of higher inflation added to the chaos. U.S. producer prices rose 0.7% and 8.3% year over year in August, leading to the biggest annual gain in nearly 11 years and indicating that high inflation was likely to persist as the pandemic put pressure on supply chains.
However, rapid widespread vaccinations, business reopenings, and trillions of dollars in government stimulus spending are powering consumer spending and resulting in robust growth. Resumption of earnings growth also bodes well for the stock market rally. S&P 500 earnings are expected to climb 42.6% on 13% higher revenues for 2021. This would follow the earnings and revenue decline of 13% and 1.7% reported in 2020.
As such, the beaten down prices offer a solid buying opportunity for investors. We have highlighted five ETFs from different sectors that have declined last week on market woes but have a solid Zacks ETF Rank #1 (Strong Buy) or #2 (Buy). Investors could definitely look at these products for outperformance in the coming weeks when the market resumes its uptrend.
WisdomTree Cloud Computing Fund– Down 4.5%
The COVID-19 infections are driving the e-commerce boom, thereby raising the need for rapid adoption of cloud computing. This ETF offers exposure to emerging and fast-growing U.S.-listed companies (including ADRs) that are primarily focused on cloud software and services, and follows the BVP Nasdaq Emerging Cloud Index.
It holds 58 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $1.4 billion in its asset base and trades in an average daily volume of 234,000 shares. It has a Zacks ETF Rank #2.
iShares Global Clean Energy ETF– Down 4.4%
Clean energy space will show strength on climate change, growing global renewable energy consumption, higher spending in cleantech business, and push toward going green. This fund provides exposure to 83 companies that produce energy from solar, wind and other renewable sources by tracking the S&P Global Clean Energy Index.
The United States and China take the top two spots in terms of country exposure with 36.9% and 15.6% share, respectively. The ETF has AUM of $6.1 billion and charges 42 bps in annual fees and expenses. It has a Zacks ETF Rank #2 (read: ESG Investing Is Hot: Bunch of New ETFs Hit Market in August).
Direxion Work From Home ETF – Down 3.8%
This is a COVID-themed based product and will likely see a surge from the pandemic. It offers exposure to companies across four technology pillars — cloud, cybersecurity, online project and document management, and remote communications — that allow investors to gain exposure to those companies that stand to benefit from an increasingly flexible work environment.
The fund tracks the Solactive Remote Work Index and holds 41 stocks in its basket. It has accumulated $117.6 million in its asset base and charges investors 45 bps in annual fees. The product trades in an average daily volume of 8,000 shares and has a Zacks ETF Rank #2.
iShares U.S. Home Construction ETF – Down 3.6%
The housing market has been on a tear buoyed by lower mortgage rates, skyrocketing demand and limited supplies. The thirst for home buying is rising even in the face of increasing housing prices, thus providing huge profits to homebuilders. ITB provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index.
With AUM of $2.3 billion, it holds a basket of 46 stocks with a heavy concentration on the top two firms. The product charges 41 bps in annual fees and trades in a heavy volume of around 2.8 million shares a day on average. It has a Zacks ETF Rank #2 (read: 5 Top-Ranked ETFs With Impressive Upside Potential).
Invesco S&P SmallCap Consumer Discretionary ETF – Down 3.5%
The consumer discretionary sector will resume its uptrend with the improving economy and rising spending. This ETFs tracks the S&P SmallCap 600 Capped Consumer Discretionary Index, charging investors 29 bps in annual fees. It holds 88 securities in its basket with specialty retail taking the largest share at 31.4% while household durables, and hotels, restaurants and leisure account for a double-digit exposure each. The product has attracted $62.1 million in AUM and trades in average daily volume of 13,000 shares. It has a Zacks ETF Rank #2.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: WCLD, ICLN, WFH, ITB and PSCD
For Immediate Release
Chicago, IL – September 14, 2021 – 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: WisdomTree Cloud Computing Fund (WCLD - Free Report) , iShares Global Clean Energy ETF (ICLN - Free Report) , Direxion Work From Home ETF (WFH - Free Report) , iShares U.S. Home Construction ETF (ITB - Free Report) and Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) .
Here are highlights from Monday’s Analyst Blog:
5 Top-Ranked ETFs to Buy on the Dip
Amid global growth concerns due to the rise in Delta variant cases of COVID-19, Wall Street saw tumultuous trading last week. The S&P 500 and Dow Jones wrapped up its worst weekly performance since June, losing 1.7% and 2.1% while the tech-heavy Nasdaq Composite Index posted its worst week since July, sliding 1.6%.
The United States is now averaging nearly 162,000 new COVID-19 cases over the last seven days. The latest surge in infections has started to take a toll on economic growth. According to the Federal Reserve's Beige Book released last week, economic growth slowed down to a moderate pace in early July through August as the Delta variant hit the dining, travel, and tourism industry (read: Delta Variant to Spark Rally in Stay-At-Home ETFs).
Additionally, signs of higher inflation added to the chaos. U.S. producer prices rose 0.7% and 8.3% year over year in August, leading to the biggest annual gain in nearly 11 years and indicating that high inflation was likely to persist as the pandemic put pressure on supply chains.
However, rapid widespread vaccinations, business reopenings, and trillions of dollars in government stimulus spending are powering consumer spending and resulting in robust growth. Resumption of earnings growth also bodes well for the stock market rally. S&P 500 earnings are expected to climb 42.6% on 13% higher revenues for 2021. This would follow the earnings and revenue decline of 13% and 1.7% reported in 2020.
As such, the beaten down prices offer a solid buying opportunity for investors. We have highlighted five ETFs from different sectors that have declined last week on market woes but have a solid Zacks ETF Rank #1 (Strong Buy) or #2 (Buy). Investors could definitely look at these products for outperformance in the coming weeks when the market resumes its uptrend.
WisdomTree Cloud Computing Fund– Down 4.5%
The COVID-19 infections are driving the e-commerce boom, thereby raising the need for rapid adoption of cloud computing. This ETF offers exposure to emerging and fast-growing U.S.-listed companies (including ADRs) that are primarily focused on cloud software and services, and follows the BVP Nasdaq Emerging Cloud Index.
It holds 58 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $1.4 billion in its asset base and trades in an average daily volume of 234,000 shares. It has a Zacks ETF Rank #2.
iShares Global Clean Energy ETF– Down 4.4%
Clean energy space will show strength on climate change, growing global renewable energy consumption, higher spending in cleantech business, and push toward going green. This fund provides exposure to 83 companies that produce energy from solar, wind and other renewable sources by tracking the S&P Global Clean Energy Index.
The United States and China take the top two spots in terms of country exposure with 36.9% and 15.6% share, respectively. The ETF has AUM of $6.1 billion and charges 42 bps in annual fees and expenses. It has a Zacks ETF Rank #2 (read: ESG Investing Is Hot: Bunch of New ETFs Hit Market in August).
Direxion Work From Home ETF – Down 3.8%
This is a COVID-themed based product and will likely see a surge from the pandemic. It offers exposure to companies across four technology pillars — cloud, cybersecurity, online project and document management, and remote communications — that allow investors to gain exposure to those companies that stand to benefit from an increasingly flexible work environment.
The fund tracks the Solactive Remote Work Index and holds 41 stocks in its basket. It has accumulated $117.6 million in its asset base and charges investors 45 bps in annual fees. The product trades in an average daily volume of 8,000 shares and has a Zacks ETF Rank #2.
iShares U.S. Home Construction ETF – Down 3.6%
The housing market has been on a tear buoyed by lower mortgage rates, skyrocketing demand and limited supplies. The thirst for home buying is rising even in the face of increasing housing prices, thus providing huge profits to homebuilders. ITB provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index.
With AUM of $2.3 billion, it holds a basket of 46 stocks with a heavy concentration on the top two firms. The product charges 41 bps in annual fees and trades in a heavy volume of around 2.8 million shares a day on average. It has a Zacks ETF Rank #2 (read: 5 Top-Ranked ETFs With Impressive Upside Potential).
Invesco S&P SmallCap Consumer Discretionary ETF – Down 3.5%
The consumer discretionary sector will resume its uptrend with the improving economy and rising spending. This ETFs tracks the S&P SmallCap 600 Capped Consumer Discretionary Index, charging investors 29 bps in annual fees. It holds 88 securities in its basket with specialty retail taking the largest share at 31.4% while household durables, and hotels, restaurants and leisure account for a double-digit exposure each. The product has attracted $62.1 million in AUM and trades in average daily volume of 13,000 shares. It has a Zacks ETF Rank #2.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.