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After the closing bell on Mar 21, transport bellwether FedEx (FDX - Free Report) reported robust third-quarter fiscal 2024 results. The courier company outpaced earnings estimates but missed on top-line.
Following the results, FDX shares jumped 13% in after-market trade on elevated volume. The smooth trading is also expected to be felt in the ETF world, especially with respect to the ones with the highest allocation to FedEx. These include First Trust Nasdaq Transportation ETF (FTXR - Free Report) , iShares U.S. Transportation ETF (IYT - Free Report) , Pacer Industrials and Logistics ETF (SHPP - Free Report) and ProShares Supply Chain Logistics ETF (SUPL - Free Report) .
Earnings per share came in at $3.86, surpassing the Zacks Consensus Estimate of $3.49 and improving 13% year over year. Revenues fell 2% year over year to $21.74 billion and fell short of the estimated $22.02 billion (see: all the Industrials ETFs here).
For fiscal 2024, the shipping giant increased its earnings view to $17.25-$18.25 from $17-$18, reflecting confidence in its strategic direction and ongoing transformation efforts. The company announced an additional $500 million buyback in the fourth quarter and authorized a new $5 billion repurchase program. It expects to achieve permanent cost reductions of $1.8 billion from the DRIVE program and has adjusted its capital spending forecast to prioritize investments in efficiency and modernization.
First Trust Nasdaq Transportation ETF offers exposure to the 41 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx occupies the second position in the basket with an 8.2% share. Automobiles, delivery services, airlines and railroads make up for double-digit allocation each.
First Trust Nasdaq Transportation ETF has amassed $38.6 million in its asset base and charges 60 bps in annual fees. The average trading volume is light at 5,000 shares. FTXR has a Zacks ETF Rank #2 (Buy).
iShares U.S. Transportation ETF tracks the S&P Transportation Select Industry FMC Capped Index, giving investors exposure to a small basket of 43 securities. Of these, FedEx takes the fifth spot and makes up 4.7% of the assets. Within the transportation sector, rail transportation takes the top spot with 26.3% share, while passenger ground transportation (20.2%), air freight and logistics (19.9%) and cargo ground transportation (17.4%) round off the next three.
iShares U.S. Transportation ETF has $994.1 million in AUM while seeing a good trading volume of around 545,000 shares a day. The fund charges 40 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook (read: Is US Manufacturing Space Improving? 4 Sector ETFs Look Decent).
Pacer Industrials and Logistics ETF tracks the Pacer Global Supply Chain Infrastructure Index, which aims to offer investors exposure to globally listed stocks and depositary receipts involved in the support and functioning of global distribution supply chains. It holds 97 stocks in its basket, with FedEx accounting for the seventh position at 4.3% share.
Pacer Industrials and Logistics ETF has accumulated $1.1 million in its asset base. It trades in a meager volume of under 500 shares and charges 60 bps in annual fees.
ProShares Supply Chain Logistics ETF is the first ETF focused exclusively on the companies poised to benefit from the transformation of how raw materials and goods move around the world. These logistics companies include leading global shipping, railroad, air and trucking companies that collectively touch every point of the supply chain. It follows the FactSet Supply Chain Logistics Index, charging investors 58 bps in annual fees.
ProShares Supply Chain Logistics ETF holds 40 stocks in its basket, with FedEx taking the 10th spot with 4.2% of the assets. It has amassed $2 million in its asset base and trades in a volume of 300 shares per day. It charges 58 bps in fees per year from investors.
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ETFs to Gain on FedEx Fiscal Q3 Earnings Beat
After the closing bell on Mar 21, transport bellwether FedEx (FDX - Free Report) reported robust third-quarter fiscal 2024 results. The courier company outpaced earnings estimates but missed on top-line.
Following the results, FDX shares jumped 13% in after-market trade on elevated volume. The smooth trading is also expected to be felt in the ETF world, especially with respect to the ones with the highest allocation to FedEx. These include First Trust Nasdaq Transportation ETF (FTXR - Free Report) , iShares U.S. Transportation ETF (IYT - Free Report) , Pacer Industrials and Logistics ETF (SHPP - Free Report) and ProShares Supply Chain Logistics ETF (SUPL - Free Report) .
Earnings per share came in at $3.86, surpassing the Zacks Consensus Estimate of $3.49 and improving 13% year over year. Revenues fell 2% year over year to $21.74 billion and fell short of the estimated $22.02 billion (see: all the Industrials ETFs here).
For fiscal 2024, the shipping giant increased its earnings view to $17.25-$18.25 from $17-$18, reflecting confidence in its strategic direction and ongoing transformation efforts. The company announced an additional $500 million buyback in the fourth quarter and authorized a new $5 billion repurchase program. It expects to achieve permanent cost reductions of $1.8 billion from the DRIVE program and has adjusted its capital spending forecast to prioritize investments in efficiency and modernization.
ETFs in Focus
Let’s delve into each ETF below:
First Trust Nasdaq Transportation ETF (FTXR - Free Report)
First Trust Nasdaq Transportation ETF offers exposure to the 41 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx occupies the second position in the basket with an 8.2% share. Automobiles, delivery services, airlines and railroads make up for double-digit allocation each.
First Trust Nasdaq Transportation ETF has amassed $38.6 million in its asset base and charges 60 bps in annual fees. The average trading volume is light at 5,000 shares. FTXR has a Zacks ETF Rank #2 (Buy).
iShares U.S. Transportation ETF (IYT - Free Report)
iShares U.S. Transportation ETF tracks the S&P Transportation Select Industry FMC Capped Index, giving investors exposure to a small basket of 43 securities. Of these, FedEx takes the fifth spot and makes up 4.7% of the assets. Within the transportation sector, rail transportation takes the top spot with 26.3% share, while passenger ground transportation (20.2%), air freight and logistics (19.9%) and cargo ground transportation (17.4%) round off the next three.
iShares U.S. Transportation ETF has $994.1 million in AUM while seeing a good trading volume of around 545,000 shares a day. The fund charges 40 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook (read: Is US Manufacturing Space Improving? 4 Sector ETFs Look Decent).
Pacer Industrials and Logistics ETF (SHPP - Free Report)
Pacer Industrials and Logistics ETF tracks the Pacer Global Supply Chain Infrastructure Index, which aims to offer investors exposure to globally listed stocks and depositary receipts involved in the support and functioning of global distribution supply chains. It holds 97 stocks in its basket, with FedEx accounting for the seventh position at 4.3% share.
Pacer Industrials and Logistics ETF has accumulated $1.1 million in its asset base. It trades in a meager volume of under 500 shares and charges 60 bps in annual fees.
ProShares Supply Chain Logistics ETF (SUPL - Free Report)
ProShares Supply Chain Logistics ETF is the first ETF focused exclusively on the companies poised to benefit from the transformation of how raw materials and goods move around the world. These logistics companies include leading global shipping, railroad, air and trucking companies that collectively touch every point of the supply chain. It follows the FactSet Supply Chain Logistics Index, charging investors 58 bps in annual fees.
ProShares Supply Chain Logistics ETF holds 40 stocks in its basket, with FedEx taking the 10th spot with 4.2% of the assets. It has amassed $2 million in its asset base and trades in a volume of 300 shares per day. It charges 58 bps in fees per year from investors.