ETF Outlook for the Week of November 4, 2013
RevenueShares Large Cap ETF (NYSE:
Earnings season continues this week with another 75 of the 500
stocks in the S&P 500 scheduled to report. So far the revenue
numbers have been "okay", with only 53 percent of the companies
in the S&P 500 beating the estimates.
The four-year average is closer to 60 percent. While the
numbers may be showing a pattern of revenue growth slowing, there
is still a majority of stocks beating estimates.
The goal of RWL is to invest in the stocks in the S&P 500,
except they are ranked by top line revenue, not market
capitalization. Year-to-date, RWL is outperforming the S&P
500 by 450 basis points by taking a slightly different approach.
The top two holdings are Wal-Mart (NYSE:
) and Exxon Mobil (NYSE:
) and the ETF charges an expense ratio of 0.49 percent.
NASDAQ Clean Edge Green Energy ETF (NASDAQ:
High-flying Tesla Motors (NASDAQ:
) reports quarterly earnings today and all eyes are on the
results after the stock has rallied nearly 400 percent in 2013.
The maker of the expensive "green" automobiles has been a
momentum favorite of Wall Street this year after a couple of
years of moving sideways.
With the company still losing money it will be interesting to
see the reaction to the earnings report later today.
With TSLA making up 17 percent of QCLN, the ETF is a round
about way of playing the earnings report. The ETF has ridden the
TSLA momentum wave to the tune of a 90 percent gain this year.
Expect the ETF to move with TSLA on Tuesday morning after the
market digests the numbers.
SPDR S&P Retail ETF (NYSE:
More focus will be on the consumer as the calendar inches
closer to the big holiday shopping season. XRT is trading at an
all-time high after a gain of 36 percent so far this year. All
indications point to the consumer being alive and well, but every
year the skeptics question the ability of the shopper to keep
This year will be no different. There is typically a sell-off
in the sector in early November before the buyers come back in
and swoop up shares of the retailers. Watch XRT closely for a
pullback in the coming week.
iShares FTSE/Xinhua China 25 Index ETF (NYSE:
According to legendary investor and head of Oaktree Capital
), Howard Marks, he is a buying of Chinese equities that he views
as undervalued. He went on saying that he feels there are
"tremendous bargains" in Chinese stocks. And that investors have
lost all confidence in the country.
It is tough to argue with such a successful investor as well
as the numbers that show China is undervalued based on historical
levels. This may be a case of buying low for long-term investors.
For access to 25 large-cap stocks based in China there is the
heavily traded FXI.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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