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Five ETFs to Watch This Week

The start of the earnings season will play a big role for ETFs in the financial, industrial, Internet and chip sectors.
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NEW YORK (TheStreet) -- The first wave of first-quarter from big name companies in the semiconductor, financial, industrial and Internet sectors will play a big role for ETFs this week.

iShares S&P North American Technology-Semiconductors Index Fund (IGW)

Semiconductor companies


(INTC) - Get Intel Corporation Report


Advanced Micro Devices

(AMD) - Get Advanced Micro Devices, Inc. Report

will both be reporting earnings this week. The two companies account for a combined 10.9% of IGW.

Since these two are in the first round of companies reporting first quarter earnings for this sector, their reports could also affect shares of other semiconductor manufacturers.

Expectations for the sector are high since semiconductor demand has been strong, and last week Samsung estimated that its own first quarter earnings will set new records based largely on the success of its chip business.

iShares: Dow US Financial Services

(IYG) - Get iShares US Financial Services ETF Report

JP Morgan

(JPM) - Get JPMorgan Chase & Co. Report

reports earnings on Wednesday and

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Bank of America

(BAC) - Get Bank of America Corp Report

reports on Friday. These financial behemoths account for about 25.5% of assets in IYG, almost evenly split between the two firms.

Financials have had a nice run since the broad market lows on Feb. 8. While it hasn't been the best performer of the group, IYG has gained more than 20% versus a gain of more than 10% for the

S&P 500 Index

. JP Morgan has nearly the same performance as IYG, but Bank of America is up nearly 30%.

JP Morgan beat earnings estimates over the past four quarters, while Bank of America missed estimates in its last two quarterly reports. This pattern may continue this week, as average earnings estimates for JP Morgan have come down over the past three months, from 66 cents to 64 cents per shares, while average estimates for Bank of America have climbed from 7 cents to 9 cents.

First Trust Dow Jones Internet Fund ETF

(FDN) - Get First Trust Dow Jones Internet Index Fund Report


(GOOG) - Get Alphabet Inc. Class C Report

will also be reporting its earnings for the first quarter this week. The company accounts for 9.5% of FDN.

Google's earnings and outlook may give investors insights into how new products and events from last quarter are affecting business, such as the launch of Google's smartphone and the company's decision to not censor search results in China.

FDN also has a sizable allocation to Internet retailers, and the retails numbers from Thursday that showed a strong March for department stores, could indicate that online vendors may also be benefiting from strong personal consumption.

Select Sector SPDR AMEX Industrial

(XLI) - Get Industrial Select Sector SPDR Fund Report

General Electric

(GE) - Get General Electric Company Report

reports on Friday and the industrial giant accounts for 12.5% of XLI.

Whether investors hold this ETF or not, they may not be able to avoid the effect of GE earnings on the market, as the widely-held diversified firm is seen as a bellwether for the U.S. economy.

Analysts are predicting the firm earned 16 cents per share in the first quarter, up from an estimate of 15 cents three months ago.

XLI has been an outperformer in 2010 thanks to strength from GE. Shares of the firm began to run on March 11 after CEO Jeffrey Immelt said the company was hiring back workers and advanced nearly 10% over the course of a few days. Since then shares are up slightly.

iShares: MSCI Thailand

(THD) - Get iShares MSCI Thailand ETF Report

THD dropped significantly on Wednesday and Thursday as protests in the capital city of Bangkok by an opposition party calling for a fresh parliamentary election have escalated.

In response, the government has called a state of emergency to try and control the demonstrators.

From an investment standpoint, THD was one of the best ETFs in the first quarter of 2010, rising on foreign inflows to the Thai stock market from international investors that see equity there as cheap. Thus far market declines have been buying opportunities, and as long as global markets are cooperative, it's likely to continue to be the case.

-- Written by Don Dion in Williamstown, Mass.

At the time of publication, Dion was long First Trust Dow Jones Internet Fund ETF.

Don Dion is president and founder of

Dion Money Management

, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.