We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
After the closing bell on Thursday, Amazon (AMZN - Free Report) reported robust second-quarter results, wherein it beat both earnings and revenue estimates. The e-commerce giant provided an upbeat revenue outlook for the ongoing quarter.
Shares of AMZN rose up as much as 9% in aftermarket hours, extending its market value more than $120 billion. Investors could tap the strength with the ETFs having 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 reported earnings per share of 65 cents, outpacing the Zacks Consensus Estimate of 34 cents. Earnings more than tripled from the year-ago earnings. Revenues grew 11% year over year to $134.4 billion and edged past the consensus estimate of $131.5 billion.
Amazon’s cloud computing business — Amazon Web Services — revenues grew 12% year over year to $22.1 billion compared with 16% growth in the first quarter and 33% in the year-ago quarter (read: Why Is It the Time to Invest in Retail ETFs?).
The world's largest online retailer expects revenues in the range of $138-$143 billion for the third quarter of 2023. The Zacks Consensus Estimate is pegged at $138.18 billion.
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 25 stocks in its basket. Amazon is the top firm, accounting for 23.8% of the portfolio.
ProShares Online Retail ETF has amassed $110.8 million in its asset base and currently trades in a moderate volume of around 19,000 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 297 stocks in its basket. Of these, Amazon takes the top spot with a 22.5% share (read: Top ETF Stories of July Relevant in August).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.3 billion in its asset base while trading in a good volume of around 74,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 308 stocks in its basket. Of these, Amazon occupies the top position, with a 22.8% allocation. Broadline Retail takes the largest share at 25%, 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 85,000 shares a day. The product has managed about $5.2 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. It is the largest and most popular product in this space, with AUM of nearly $17.3 billion and an average daily volume of around 5 million shares. Holding 53 securities in its basket, Amazon takes the top spot with 22.7% of assets. Broadline retail, automobiles, hotels, restaurants & leisure, and specialty retail are the top four sectors with double-digit exposure each.
Consumer Discretionary Select Sector SPDR Fund charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook (read: 5 ETFs to Ride On Solid Q2 Economic Growth).
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 a 19.8% share.
VanEck Vectors Retail ETF has amassed $155.6 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 ETFs to Profit from Amazon's Q2 Earnings Beat
After the closing bell on Thursday, Amazon (AMZN - Free Report) reported robust second-quarter results, wherein it beat both earnings and revenue estimates. The e-commerce giant provided an upbeat revenue outlook for the ongoing quarter.
Shares of AMZN rose up as much as 9% in aftermarket hours, extending its market value more than $120 billion. Investors could tap the strength with the ETFs having 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 reported earnings per share of 65 cents, outpacing the Zacks Consensus Estimate of 34 cents. Earnings more than tripled from the year-ago earnings. Revenues grew 11% year over year to $134.4 billion and edged past the consensus estimate of $131.5 billion.
Amazon’s cloud computing business — Amazon Web Services — revenues grew 12% year over year to $22.1 billion compared with 16% growth in the first quarter and 33% in the year-ago quarter (read: Why Is It the Time to Invest in Retail ETFs?).
The world's largest online retailer expects revenues in the range of $138-$143 billion for the third quarter of 2023. The Zacks Consensus Estimate is pegged at $138.18 billion.
ETFs to Buy
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 25 stocks in its basket. Amazon is the top firm, accounting for 23.8% of the portfolio.
ProShares Online Retail ETF has amassed $110.8 million in its asset base and currently trades in a moderate volume of around 19,000 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 297 stocks in its basket. Of these, Amazon takes the top spot with a 22.5% share (read: Top ETF Stories of July Relevant in August).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.3 billion in its asset base while trading in a good volume of around 74,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
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 308 stocks in its basket. Of these, Amazon occupies the top position, with a 22.8% allocation. Broadline Retail takes the largest share at 25%, 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 85,000 shares a day. The product has managed about $5.2 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. It is the largest and most popular product in this space, with AUM of nearly $17.3 billion and an average daily volume of around 5 million shares. Holding 53 securities in its basket, Amazon takes the top spot with 22.7% of assets. Broadline retail, automobiles, hotels, restaurants & leisure, and specialty retail are the top four sectors with double-digit exposure each.
Consumer Discretionary Select Sector SPDR Fund charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook (read: 5 ETFs to Ride On Solid Q2 Economic Growth).
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 a 19.8% share.
VanEck Vectors Retail ETF has amassed $155.6 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.