3 ETFs Poised To Benefit From Earnings Season [iShares Dow Jones Transport. Avg. (ETF), First Trust Exchange-Traded Fund II]

The fund charges an expense ratio of 45 basis points and had an excellent return of 41.2% in 2013. Continued pick-up in the economy and strong uptrend in e-commerce sales should keep this fund on the bullish trend this year as well.

IYT is a Zacks Rank # 2 (Buy) ETF.

Financials–iShares Dow Jones US Broker-Dealers ETF (NYSEARCA:IAI)

Total year-over-year earnings growth for the Finance sector is driven mainly by easy comparisons, particularly for Bank of America and the insurers.  Looking at expected earnings for various industries/sub-industries within the Financials sector, “investment banks and brokerages likely generated investment fee growth in Q4 from higher asset inflows and equity prices, which increased total assets under management” per S&P Capital IQ.

IAI tracks the Dow Jones U.S. Select Investment Services Index. The product currently holds 22 securities and invests almost 60% of total assets in its top 10 holdings. Goldman Sachs, Morgan Stanley and Charles Schwab are the top three holdings of the fund.

Going forward, the market will probably be more volatile this year resulting in higher trading volumes, which benefit brokers and exchanges. These segments also get a boost from higher interest rates.

The fund has so far attracted $229.7 million in AUM and charges 45 bps in fees per year from investors. The product had an excellent performance in 2013, with a whopping 65.6% return.

The ETF currently has a Zacks Rank # 2 (Buy).

Autos–First Trust NASDAQ Global Auto Index Fund (NASDAQ:CARZ)

Autos sector is expected to report 15.8% earnings growth for Q4, followed by growth of 14.9% and 22.7% for 2014 and 2015 respectively.

2013 was a great year for US auto sales, with an 8% annual increase in sales. Going forward, an improving U.S. economy, and healing labor markets would encourage more households to spend on new cars.

Further, improving conditions in Europe and some of the major emerging markets are expected to result in higher car sales globally.

CARZ tracks the NASDAQ OMX Global Auto Index, The product made its debut in May 2011 and has managed to attract $52.7 million in assets so far, It holds 38 securities in its portfolio but is top heavy, with the top 10 firms accounting for about 60% of the assets.  Daimler, Volkswagen, Toyota and Honda and Ford are the top four holdings.

In terms of country exposure, Japan takes the top spot at 35% while Germany and the U.S. also get double-digit allocations, 25% and 20% respectively.

The product charges 70 bps in annual expenses and returned 36.9% in 2013.

CARZ currently has a Zacks ETF Rank # 2 (Buy).

This article is brought to you courtesy of Eric Dutram.

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