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3 Classic Tech ETFs to be Tested by Earnings Reports This Week

Earnings seasons is chugging along and this week brings mammoth tests for the high-flying communication services and technology sectors. Consider this week of “not fooling around” earnings reports because ... Read More...

Earnings seasons is chugging along and this week brings mammoth tests for the high-flying communication services and technology sectors. Consider this week of “not fooling around” earnings reports because technology and communication services stocks combine for about 34.60% of the S&P 500’s weight.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Here's the run down of big name technology and communication services stocks reporting earnings this week: Apple (NASDAQ: AAPL) delivers results on Jan. 28. The following day, Facebook (NASDAQ: FB) and Microsoft (NASDAQ: MSFT) report.&nbsp;Amazon (NASDAQ: AMZN) reports on Jan. 30.” data-reactid=”19″>Here’s the run down of big name technology and communication services stocks reporting earnings this week: Apple (NASDAQ: AAPL) delivers results on Jan. 28. The following day, Facebook (NASDAQ: FB) and Microsoft (NASDAQ: MSFT) report. Amazon (NASDAQ: AMZN) reports on Jan. 30.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="And while Feb. 3 is next week, that date is worth remembering because that's when Google parent Alphabet (NASDAQ: GOOG GOOGL) steps into the earnings confessional.” data-reactid=”20″>And while Feb. 3 is next week, that date is worth remembering because that’s when Google parent Alphabet (NASDAQ: GOOG GOOGL) steps into the earnings confessional.

Here are some exchange traded funds that will be in the earnings spotlight over the next several days.

Technology Select Sector SPDR (XLK)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="After a monster year in 2019, the Technology Select Sector SPDR (NYSE: XLK) is off to a stellar start in 2020 with a gain of 6.3%. That will be tested this week because XLK, the largest tech ETF by assets, will be under earnings scrutiny in significant fashion.” data-reactid=”23″>After a monster year in 2019, the Technology Select Sector SPDR (NYSE: XLK) is off to a stellar start in 2020 with a gain of 6.3%. That will be tested this week because XLK, the largest tech ETF by assets, will be under earnings scrutiny in significant fashion.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="View more earnings on QQQ” data-reactid=”24″>View more earnings on QQQ

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Apple and Microsoft combine for nearly 40% of this fund’s weight, exposure to those names that’s comparable among other cap-weighted tech ETFs.” data-reactid=”25″>Apple and Microsoft combine for nearly 40% of this fund’s weight, exposure to those names that’s comparable among other cap-weighted tech ETFs.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="And don't forget that Visa (NYSE: V), 5.33% of XLK’s roster, also reports later this week.” data-reactid=”26″>And don’t forget that Visa (NYSE: V), 5.33% of XLK’s roster, also reports later this week.

Communication Services Select Sector SPDR (XLC)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Communication Services Select Sector SPDR (NYSE: XLC) is the oldest and largest ETF dedicated to this sector. More importantly, its the ETF with the largest Facebook weight as the social media giant accounts for almost 20% of XLC’s roster, according to issuer data.” data-reactid=”28″>The Communication Services Select Sector SPDR (NYSE: XLC) is the oldest and largest ETF dedicated to this sector. More importantly, its the ETF with the largest Facebook weight as the social media giant accounts for almost 20% of XLC’s roster, according to issuer data.

As noted earlier, Alphabet reports earnings next week and the GOOG and GOOGL classes of that stock combine for 23.5% of XLC’s roster.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="However, there's more to consider this week with XLC as AT&amp;T (NYSE: T) and Verizon (NYSE: VZ), a combined 8.40% of the fund’s weight, also report earnings.” data-reactid=”30″>However, there’s more to consider this week with XLC as AT&T (NYSE: T) and Verizon (NYSE: VZ), a combined 8.40% of the fund’s weight, also report earnings.

Invesco QQQ (QQQ)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Invesco QQQ (NASDAQ: QQQ) makes for a predictable ETF to consider over the next few days because it devotes 69% of its weight to technology and communication services stocks.” data-reactid=”32″>The Invesco QQQ (NASDAQ: QQQ) makes for a predictable ETF to consider over the next few days because it devotes 69% of its weight to technology and communication services stocks.

Apple and Microsoft combine for nearly 23% of QQQ’s weight while Amazon, Facebook and Google and combine for another 20.60%.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”35″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”38″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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