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6 ETFs With The Largest Exposure To Netflix

Summary 6 ETFs have more than 2% of total assets dedicated to Netflix. Some have exposure as high as 7%. Netflix plunged almost 9% on Thursday, thanks to an earnings report that missed on both revenue and subscriber growth estimates. The size of some of the ETFs listed is very small and thus may face liquidity and tradeability issues. Netflix (NASDAQ: NFLX ) made news this week when it delivered its third-quarter earnings report. The company reported disappointing revenue and subscriber growth, and as a result, the stock dropped over 8% on the day. NFLX has been a very popular momentum stock not just among individual investors, but by ETFs as well. There are 6 ETFs that currently have at least a 2% weighting in Netflix. Some are significantly higher than that, and any ETF that had a large exposure to Netflix on Thursday likely had trouble matching the broader market’s performance. Each of these ETFs is primarily technology and Internet focused, and as a result, is riskier than the average broad equity market fund. Keep in mind that these weightings can change over time, but if you’re looking for exposure to Netflix, these ETFs would be the place to start. PowerShares NASDAQ Internet Portfolio (NASDAQ: PNQI ) – 7.47% weighting While this ETF has the largest weighting of Netflix stock in its portfolio, it shouldn’t be too surprising given how concentrated this portfolio is. It has 95 positions in the portfolio, but the top 10 holdings account for 60% of the fund’s assets. In fact, NFLX is only the 5th largest holding. Despite its significant weight in Netflix, this ETF still performed comparably to the NASDAQ on Thursday. It was up 1.3% compared to the NASDAQ 1.8% gain. SPDR Morgan Stanley Technology ETF (NYSEARCA: MTK ) – 6.04% weighting In this ETF, Netflix is the top dog. With just 37 holdings, this fund is also concentrated but weightings tend to be distributed a little more evenly. This fund has the added benefit of also being one of the cheapest. Its 0.35% expense ratio falls well below the 0.59% average ETF ratio. The heavy Netflix weighting helped weigh down this ETF’s performance Thursday. It managed a gain of just 0.3% on a day when technology stocks as a whole moved broadly higher. First Trust DJ Internet Index ETF (NYSEARCA: FDN ) – 5.44% weighting Another concentrated technology ETF, this fund has nearly 60% of assets in its top 10, and Netflix is just the 3rd largest holding here. This fund is easily the largest among the ETFs on this list at nearly $3.6 billion in assets, so this fund will be the most liquid and easiest to trade. This ETF nearly matched the pace of the NASDAQ on Thursday, rising nearly 1.5%. First Trust ISE Cloud Computing Index ETF (NASDAQ: SKYY ) – 4.47% weighting As an ETF index provider, ISE is probably better known for the PureFunds ISE Cyber Security ETF (NYSEARCA: HACK ) that’s garnered over $1 billion in assets in a short period of time, but this fund is slowly gaining notoriety in its own right. This fund’s composition is fairly similar to the Dow Jones Internet Index Fund – concentrated and roughly equal weighted – but it’s significantly smaller and hasn’t performed nearly as well. This fund wasn’t hit terribly hard by its Netflix position as it still delivered a 1.5% gain on Thursday. Ark Web x.0 ETF (NYSEARCA: ARKW ) – 3.88% weighting Here’s where we start getting into the really small ETFs. This fund has just $12 million in assets and is very thinly traded. Typically, trading just a few hundred shares a day, liquidity is a significant issue, and the costs of trading may be too high. Despite the fact that ARKW is about a year old but hasn’t really caught on it still makes the list for its large position in Netflix. This is the only ETF on the list that was actually down on Thursday. Ark Innovation ETF (NYSEARCA: ARKK ) – 2.83% weighting This ETF also from the Ark Investment Management family is even smaller than the one listed above with just $8 million in assets. Pretty much everything mentioned above with the Web x.0 ETF applies here as well. This fund manages to eke out a tiny gain on Thursday based on just one 100 share trade.

Banking Earnings Soft: Buy Financial ETFs On Value?

The financial sector, which accounts for around one-fifth of the S&P 500 index, had a sluggish- to-decent Q3. Weak capital market activities and global growth worries along with a low interest rate environment dealt a blow to the space. However, modest gains in loan growth amid low interest rates, investment banking activities thanks to surge in corporate actions and cost containment efforts helped the space to stay afloat in the quarter. As evident from the big bank earnings, the sector has been an average performer. Per the Zacks Earnings Trend issued on October 14, financial earnings are expected to jump 9.6% this quarter on 3.7% lower revenues. To be more specific, easy comparisons at Bank of America Corporation or BofA (NYSE: BAC ) is leading the sector. Excluding Bank of America, results would have been much more muted than it looks now. Earnings would fall in absence of BofA’s stellar growth (read: Guide to the 7 Most Popular Financial ETFs ). Let’s take a look at the big banks’ earnings which released lately. Big Bank Earnings in Focus JPMorgan (NYSE: JPM ) reported earnings of $1.32 per share missing the Zacks Consensus Estimate by 4.4% and the year-ago earnings by 2.9%. Managed net revenue of $23.5 billion in the quarter was down 6% from the year-ago quarter. It also compared unfavorably with the Zacks Consensus Estimate of $23.8 billion. Goldman (NYSE: GS ) earned $2.90 per share in Q3, falling short of the Zacks Consensus Estimate of $3.08 per share and declining from the year-ago figure of $4.57. The shortfall in earnings reflected a fall in revenues, hurt by lower trading activity in the quarter, be it bonds, currencies or commodities (read: 3 Sector ETFs Hit Hard by the Market Sell-off ). Net revenue dived 18% year over year to $6.9 billion for the quarter. Revenues also lagged the Zacks Consensus Estimate of $7.3 billion. Lower net interest as well as non-interest income weighed on the top line. Citigroup Inc.’s (NYSE: C ) adjusted earnings per share of $1.31 for the quarter outpaced the Zacks Consensus Estimate of $1.29. Further, earnings compared favorably with the year-ago figure of $0.95 per share. Adjusted revenues of Citigroup declined 8% year over year to $18.5 billion. Also, the revenue figure missed the Zacks Consensus Estimate of $18.76 billion. Wells Fargo (NYSE: WFC ) earned $1.05/share in 3Q15 beating the Zacks Consensus Estimate by a penny. The reported figure was also above the year-ago number of $1.02 per share. The quarter’s total revenue came in at $21.9 billion, outpacing the Zacks Consensus Estimate of $21.5 billion. Moreover, revenues rose 3.3% year over year. Bank of America Corporation’s third-quarter earnings of $0.37 per share outdid the Zacks Consensus Estimate of $0.34. Further, the bottom line witnessed a significant improvement from net loss of $0.04 incurred in the prior-year quarter. Net revenue of $20.7 billion was down 2% year over year and met the Zacks Consensus Estimate. ETF Impact Despite a run of listless results from banks this week, the concerned ETFs buoyed up on the recent Fed-induced optimism. Most U.S. financial ETFs returned at least 1% since the earnings came out (as of October 15, 2015). All the aforementioned companies have considerable exposure in funds like the i Shares U.S. Financial Services ETF (NYSEARCA: IYG ) , the PowerShares KBW Bank Portfolio ETF (NYSEARCA: KBWB ) , the Financial Select Sector SPDR ETF (NYSEARCA: XLF ) , the iShares U.S. Broker-Dealers ETF (NYSEARCA: IAI ) and the Vanguard Financials ETF (NYSEARCA: VFH ) . All the funds are in green post big banks’ results, having returned in the range of 1─1.8% (as of October 15, 2015). It seems that investors are paying more heed to the market rally which could boost the weakling of this quarter – trading activities, going forward. The bond market is also displaying a strong trend on a dovish Fed and a delayed rate hike possibility. This could go in favor banks’ client activity in the fourth quarter. In any case, sooner or later, the U.S. economy is due for a lift-off and U.S. banks are now much more well-balanced than they were at the time of the last recession. All the aforementioned ETFs apart from IAI have a Zacks ETF Rank # 2 (Buy), sport compelling valuation and thus emerge as better plays than an individual stock pick. Link to the original post on Zacks.com

High Yield Bond And Healthcare: 2 ETFs To Watch On Outsized Volume

In the last trading session, the U.S. stocks rose on better-than-expected results in the financial sector and the fading prospect of interest rates hike. Among the top ETFs, investors saw the SPDR S&P 500 Trust ETF (NYSEARCA: SPY ) gain 1.5% while the SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA ) rise 1.3% and the PowerShares QQQ Trust ETF (NASDAQ: QQQ ) move higher by 1.6% on the day. Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most recent trading session. This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra-interest continues: Market Vectors International High Yield Bond ETF (NYSEARCA: IHY ) : Volume 5.73 times average This international high yield bond ETF was in focus yesterday as around 248,000 shares moved hands compared with an average of roughly 47,000 shares a day. We also saw some price movement as IHY lost 0.6% in the last session. The big move was largely the result of investors’ drive for higher yield amid ultra-low interest rates and delayed rate hike speculation. In the past one-month period, IHY was up 0.2%. This healthcare ETF was under the microscope yesterday as more than 542,000 shares moved hands. This compares with an average trading day of around 157,000 shares and came as IHF gained 0.5% in the session. The movement can largely be blamed on the earnings release of UnitedHealth Group (NYSE: UNH ) that can have a big impact on the healthcare stocks like what we find in this ETF portfolio. IHF was down 6.1% in the past one month and currently has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a Medium risk outlook. Link to the original post on Zacks.com Share this article with a colleague