Latest news with #VanguardConsumerDiscretionaryETFVCR
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10 hours ago
- Business
- Yahoo
Consumer Rebound Boosts Outlook for Discretionary ETFs
Americans have started to feel optimistic about the economy, as the initial shock from steep tariffs begins to wear off and inflation pressures ease. Rising consumer sentiment bodes well for household spending in the coming months. It is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending. Investors can tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR and iShares U.S. Consumer Services ETF IYC. These funds have a Zacks ETF Rank #3 (Hold).U.S. consumer sentiment climbed in June for the first time in six months, offering a glimmer of optimism amid lingering policy uncertainty. According to preliminary data from the University of Michigan's Surveys of Consumers, the Consumer Sentiment Index jumped to 60.5, up from 52.2 in May and well above economists' expectations of 53.6. The rebound follows one of the lowest sentiment readings on record in May. Short and long-term inflation forecasts softened notably. One-year inflation expectations dropped significantly to 5.1% in June, down from 6.6% in May—a level not seen in over four decades. Expectations for inflation over the next five to 10 years also edged down slightly to 4.1% from 4.2% the previous month (read: Sector ETFs Set to Gain as Inflation Cools in May). The surge in confidence followed the Trump administration's decision to delay new tariffs in April and reach a temporary truce with China in May. As Surveys of Consumers Director Joanne Hsu remarked, 'Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed.'These shifts suggest consumers are regaining some confidence as economic conditions stabilize and uncertainty around trade policy begins to diminish. The data aligns with the other survey report released late last month. The Conference Board's Consumer Confidence Index rose sharply in May to 98, well above April's 85.7 reading and comfortably ahead of the 87.1 economists had forecast. Its expectations index, which gauges the outlook for income, business, and labor conditions over the next six months, surged to 72.8 in May from a 13-year low of 55.4 in April — the strongest monthly jump since May 2009. Consumer Discretionary Select Sector SPDR Fund (XLY) Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 51 securities in its basket, with key holdings in hotels, restaurants and leisure, broadline retail, specialty retail, and automobiles with a double-digit allocation each (read: Consumer Discretionary ETFs Set for a Comeback?).Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $21.7 billion and an average daily volume of around 4 million shares. It charges 0.08% in expense Consumer Discretionary ETF (VCR) Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. In terms of industrial exposure, broadline retail, automobile manufacturers and restaurants occupy the top three spots. Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 9 bps in annual fees while volume is good at nearly 77,000 shares a day. The fund has managed $6 billion in its asset base so U.S. Consumer Services ETF (IYC)iShares U.S. Consumer Discretionary ETF offers exposure to U.S. companies that distribute food, drugs, general retail items and media by tracking the Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index. It holds 174 stocks in its basket, with key holdings in consumer discretionary, consumer services, media & entertainment, and autos & U.S. Consumer Discretionary ETF has amassed $1.5 billion in its asset base and trades in a moderate volume of 86,000 shares a day on average. It charges 39 bps in annual fees from investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
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05-02-2025
- Business
- Yahoo
Are Amazon ETFs a Buy Ahead of Q4 Earnings?
Amazon AMZN is set to release fourth-quarter 2024 results on Feb. 6, after market close. Being a market leader in e-commerce, it is worth taking a look at the company's fundamentals ahead of its results. .Amazon stock has risen 21% over the past three months, outperforming the industry's growth of 10.8%. The outperformance is expected to continue, given that the online behemoth has an increased chance of beating estimates in its quarterly report. It saw positive earnings revision activity, which is generally a precursor to an earnings beat. Image Source: Zacks Investment Research Given this, investors could tap this opportune moment through ETFs that have a double-digit allocation to this online behemoth. These include ProShares Online Retail ETF ONLN, Fidelity MSCI Consumer Discretionary Index ETF FDIS, Vanguard Consumer Discretionary ETF VCR, Consumer Discretionary Select Sector SPDR Fund XLY and VanEck Vectors Retail ETF RTH. Amazon has an Earnings ESP of +4.78% and a Zacks Rank #2 (Buy). According to our surprise prediction methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. The stock saw a positive earnings estimate revision of a couple of cents in the past 30 days for the fourth quarter. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends for the stock. The Zacks Consensus Estimate implies massive year-over-year earnings growth of 50.5% and substantial revenue growth of 10.2% for the to-be-reported quarter. Additionally, Amazon's earnings surprise history is impressive, with a surprise of 25.85%, on average, in the last four quarters (read: 4 ETF Sectors to Win Despite Moderate Retail Sales in December). Inc. price-consensus-eps-surprise-chart | Inc. Quote Amazon currently has a Wall Street analyst recommendation of 1.10 on a scale of 1 to 5 (Strong Buy to Strong Sell), made by 50 brokerage firms. Of these, 46 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 92% and 6% of all recommendations. Based on short-term price targets offered by 49 analysts, the average price target for Amazon comes to $256.84, ranging from a low of $212.00 to a high of $306.00. The stock has a solid Growth Score of A and falls under a top-ranked Zacks industry (top 28%), indicating that it is primed for growth. Amazon soared to new all-time highs, given its continued dominance in e-commerce and expanding footprint in cloud computing, advertising, and various other sectors. Amazon's AI business, already up by triple-digit percentages, is growing much faster than the cloud business at a comparable stage of evolution. The world's largest online retailer expects revenues in the range of $181.5-$188.5 billion for the fourth quarter of 2024. Like other tech companies, Amazon has been ramping up investments in data centers, chips and the power needed for AI workloads. ProShares Online Retail ETF (ONLN)ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeroes in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 20 stocks in its basket. Amazon is the top firm, accounting for 23.9% of the Online Retail ETF has amassed $78.5 million in its asset base and currently trades in a moderate volume of around 18,000 shares a day on average. It charges 58 bps in annual fees from investors. Fidelity MSCI Consumer Discretionary Index ETF (FDIS)Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 268 stocks in its basket. Of these, Amazon takes the top spot with a 22.5% share (see: all the Consumer Discretionary ETFs here). Fidelity MSCI Consumer Discretionary Index ETF has amassed $2.1 billion in its asset base while trading in a good volume of around 90,000 shares a day on average. It charges 8 bps in annual fees from investors and currently has a Zacks ETF Rank #3 (Hold) with a Medium risk Consumer Discretionary ETF (VCR)Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 298 stocks in its basket. Of these, Amazon occupies the top position, with a 22.5% allocation. Broadline Retail takes the largest share at 24.9%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots. VCR charges investors 9 bps in annual fees, while volume is moderate at nearly 55,000 shares a day. The product has managed about $6.9 billion in its asset base and currently carries a Zacks ETF Rank #3 with a Medium risk Discretionary Select Sector SPDR Fund (XLY)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 $24.6 billion and an average daily volume of around 3 million shares. Holding 51 securities in its basket, Amazon takes the top spot with 21.9% of assets. Hotels, restaurants & leisure, broadline retail, specialty retail, and automobiles are the top four sectors with double-digit exposure each. Consumer Discretionary Select Sector SPDR Fund charges 8 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk Vectors Retail ETF (RTH)VanEck Vectors Retail ETF provides exposure to the 26 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 20.3% share (read: Retail ETF Hits New 52-Week High).VanEck Vectors Retail ETF has amassed $237.3 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 6,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report VanEck Retail ETF (RTH): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on click here. Zacks Investment Research Sign in to access your portfolio
