2 ETFs to Focus on Following Big Tech Earnings

In the July policy meeting, the Federal Reserve raised its benchmark interest rate by another 0.75 percentage point to tame the multi-decade high inflation. Moreover, the U.S. economy contracted for two consecutive quarters, with GDP declining 0.9% in the second quarter, fueling recession concerns.

Mayor Eric Adams said that the U.S. has entered into a recession and “Wall Street is collapsing,” contrary to President Biden’s claims that the nation is doing all right. However, better-than-expected earnings reports from many tech giants have kept investors’ sentiment positive lately. The tech-heavy Nasdaq Composite added 1.9% in the last trading session to close its best month since 2020.

So, we think it could be wise to invest in tech-focused ETFs ProShares S&P Technology Dividend Aristocrats ETF (TDV) and Innovator Nasdaq-100 Power Buffer ETF – October (NOCT) to capitalize on the current market trends.

ProShares S&P Technology Dividend Aristocrats ETF (TDV)

Non-diversified fund TDV seeks investment results that track the performance of the S&P Technology Dividend Aristocrats Index. The index targets companies from the U.S. technology sector. 

With $111.30 million in assets under management (AUM), TDV’s top holdings include Avnet, Inc. (AVT) with a 3.06% weighting; Littelfuse, Inc. (LFUS) at 2.98%; and Badger Meter, Inc. (BMI) at 2.75%. Over the past month, the ETF's fund flows came in at $1.11 million. In addition, its 0.46% expense ratio compares favorably to the 0.55% category average.

Closing the last trading session at $60.01, the ETF is currently trading below its 52-week high of $67.42. The fund has gained 11.5% over the past month.

TDV’s POWR Ratings reflect this promising outlook. The ETF has an overall rating of B, which equates to Buy in our proprietary rating system.

TDV has an A grade for Peer and a B for Buy & Hold and Trade. Of the 118 ETFs in the Technology Equities ETFs group, TDV is ranked #3.

Innovator Nasdaq-100 Power Buffer ETF – October (NOCT)

NOCT seeks to provide returns that match those of the NASDAQ-100 Price Index while providing a buffer against the first 15% of NASDAQ-100 Price Index losses over a certain holding period. The actively-managed non-diversified fund invests at least 80% of its net assets in FLexible Exchange Options.

The fund has approximately $58.20 million AUM. Also, 47.6% of its portfolio consists of technology stocks.

NOCT has an expense ratio of 0.81% versus the category average of 0.67%. The fund has gained 6.2% over the past month.

Closing the last trading session at $37.65, the ETF is trading below its 52-week high of $40.66.

It is no surprise that NOCT has an overall rating of B, which translates to Buy in our POWR Ratings system. It also has an A grade for Peer and Trade and a B for Buy & Hold. In addition, it is currently ranked #6 in the Technology Equities ETFs group.

TDV shares were trading at $59.95 per share on Monday afternoon, down $0.06 (-0.10%). Year-to-date, TDV has declined -9.81%, versus a -12.78% rise in the benchmark S&P 500 index during the same period.

Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.

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