Wall Street analysts had low expectations for the second quarter earnings season’s results, but companies are coming out of it with more steam than before. Even though not all reports were positive, the U.S. market has continued through the summer months on a generally positive note. With this in mind, it is no surprise that the ETF industry is booming; July alone saw the introduction of 17 new funds and not a single closing, and equities continue to push forward in 2013 [see also How to Pick The Right ETF Every Time].
First Quarter Earnings Season Standouts
The chart below highlights six of the best performing U.S. equity ETFs over the last 4 weeks, highlighting performances, volatility and expense ratio. Note that the size of each bubble is based on expense ratio [see Visual History Of The S&P 500].
- NASDAQ Internet Portfolio (PNQI, B)
- SPDR S&P Biotech ETF (XBI, B-)
- Large Cap Growth Equity Strategy Fund (RWG, C)
- Dynamic Pharmaceuticals (PJP, B-)
- IPOX -100 Index Fund (FPX, B+)
- iShares U.S. Aerospace & Defense ETF (ITA, A-)
The Bottom Line
With a wide representation from the equities market performing relatively well, there have been some superb individual standouts that have outperformed major indexes. With tech companies like Facebook beating expectations, PNQI has experienced a huge inflow of investments along with a bump in returns. Biotech and pharmaceutical ETFs have also been enjoying a strong year, with a number of manufacturers gaining FDA product approval and clients in the last quarter; both XBI and PJP have taken off. Perhaps the largest surprise came from the Airplane manufacturers such as Boeing, whose sales continued to soar even while it’s newest plane took some bad press; FPX is up over nine percent in the last four weeks.
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Disclosure: No positions at time of writing.