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Amazon Posts Q2 Losses, Shares Spikes: ETFs in Focus
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After the closing bell on Thursday, Amazon (AMZN - Free Report) reported its second-quarter results, with the second consecutive quarterly loss. However, the e-commerce giant beat on revenues and offered an upbeat outlook. Shares of AMZN spiked as much as 14% in aftermarket hours on elevated volume, increasing its market valuation by more than $150 billion.
This has put focus on ETFs with a substantial allocation to this online behemoth. These include ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) .
Amazon lost 20 cents per share in the second quarter against the Zacks Consensus Estimate of 15 cents earnings per share. Revenues grew 7% year over year to $121.2 billion but edged past the consensus estimate of $119.7 billion. Amazon’s cloud computing business — Amazon Web Services — continued to shine, with revenues surging 33% year over year to $19.7 billion. Management expects Amazon Web Services to grow at a faster pace for the rest of the year.
The world's largest online retailer expects revenues in the range of $125-$130 billion for the third quarter of 2022, suggesting 13-17% growth from the year-ago reported number (read: Buy Discretionary ETFs on Improving Consumer Sentiment).
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels, and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 40 stocks in its basket. Amazon is the top firm accounting for 23.2% of the portfolio.
ProShares Online Retail ETF has amassed $255 million in its asset base and currently trades in a moderate volume of around 98,000 shares a day, on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 333 stocks in its basket. Of these, Amazon takes the top spot with a 23.1% share. Internet & direct marketing retail makes up the top sector, with a 25.1% share, followed by specialty retail (19.7%), hotels restaurants & leisure (17.8%) and automobiles (16.4%). Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 82,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Tesla Mixed Q2 Earnings Put These ETFs in Focus).
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 313 stocks in its basket. Of these, Amazon occupies the top position, with a 23.1% allocation. Internet & direct marketing retail takes the largest share at 25.2%, while automobile manufacturers, restaurants, and home improvement retail round off the next three spots.
VCR charges investors 10 bps in annual fees, while volume is moderate at nearly 137,000 shares a day. The product has managed about $4.5 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. Holding 58 securities in its basket, Amazon takes the top spot with 22.9% of assets. Internet & direct marketing retail dominates about 24% of the portfolio, while automobiles, specialty retail, and hotels, restaurants and leisure round off the next three spots with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $14.2 billion and an average daily volume of around 6 million shares. It charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook.
VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with an 18.6% share (read: Has the Market Bottomed? 6 ETFs in High Momentum).
VanEck Vectors Retail ETF has amassed $155.3 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 9,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
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Amazon Posts Q2 Losses, Shares Spikes: ETFs in Focus
After the closing bell on Thursday, Amazon (AMZN - Free Report) reported its second-quarter results, with the second consecutive quarterly loss. However, the e-commerce giant beat on revenues and offered an upbeat outlook. Shares of AMZN spiked as much as 14% in aftermarket hours on elevated volume, increasing its market valuation by more than $150 billion.
This has put focus on ETFs with a substantial allocation to this online behemoth. These include ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) .
Amazon lost 20 cents per share in the second quarter against the Zacks Consensus Estimate of 15 cents earnings per share. Revenues grew 7% year over year to $121.2 billion but edged past the consensus estimate of $119.7 billion. Amazon’s cloud computing business — Amazon Web Services — continued to shine, with revenues surging 33% year over year to $19.7 billion. Management expects Amazon Web Services to grow at a faster pace for the rest of the year.
The world's largest online retailer expects revenues in the range of $125-$130 billion for the third quarter of 2022, suggesting 13-17% growth from the year-ago reported number (read: Buy Discretionary ETFs on Improving Consumer Sentiment).
ETFs in Focus
ProShares Online Retail ETF (ONLN - Free Report)
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels, and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 40 stocks in its basket. Amazon is the top firm accounting for 23.2% of the portfolio.
ProShares Online Retail ETF has amassed $255 million in its asset base and currently trades in a moderate volume of around 98,000 shares a day, on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 333 stocks in its basket. Of these, Amazon takes the top spot with a 23.1% share. Internet & direct marketing retail makes up the top sector, with a 25.1% share, followed by specialty retail (19.7%), hotels restaurants & leisure (17.8%) and automobiles (16.4%).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 82,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Tesla Mixed Q2 Earnings Put These ETFs in Focus).
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 313 stocks in its basket. Of these, Amazon occupies the top position, with a 23.1% allocation. Internet & direct marketing retail takes the largest share at 25.2%, while automobile manufacturers, restaurants, and home improvement retail round off the next three spots.
VCR charges investors 10 bps in annual fees, while volume is moderate at nearly 137,000 shares a day. The product has managed about $4.5 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. Holding 58 securities in its basket, Amazon takes the top spot with 22.9% of assets. Internet & direct marketing retail dominates about 24% of the portfolio, while automobiles, specialty retail, and hotels, restaurants and leisure round off the next three spots with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $14.2 billion and an average daily volume of around 6 million shares. It charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook.
VanEck Vectors Retail ETF (RTH - Free Report)
VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with an 18.6% share (read: Has the Market Bottomed? 6 ETFs in High Momentum).
VanEck Vectors Retail ETF has amassed $155.3 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 9,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.