A handful of exchange traded funds with significant exposure to Big Tech could see action this week as Wall Street’s popular megacap tech names are set to deliver Q2 earnings in the coming days.
Of the ETF universe, there are four funds in particular that have heavy exposure to Alphabet (GOOG) (GOOGL), Microsoft (MSFT), Meta Platforms (META), Amazon (AMZN), and Apple (AAPL), which are each set to report earnings this week.
Alphabet: GOOG is set to deliver its earnings report on Tuesday and the ETF that has the most significant weighting towards the stock is the Fidelity MSCI Communication Services Index ETF (NYSEARCA:FCOM). The fund has a 23.54% weighting towards the Google parent.
YTD price action: GOOG -24.3% and FCOM -29.1%.
Microsoft: Along with GOOG, MSFT will announce its Q2 results on Tuesday. The fund that has the highest portfolio weighting towards the software giant is the Technology Select Sector SPDR Fund (NYSEARCA:XLK). XLK’s exposure to MSFT sits at 22.24%.
YTD price action: MSFT -22.8% and XLK -22.4%.
Meta Platforms: META plans to announce its earnings on Wednesday and the ETF with the most prominent position in the social media firm is the Communication Services Select Sector SPDR Fund (NYSEARCA:XLC). The weighting currently sits at 18.09%.
YTD price action: META -50.3% and XLC -28.3%.
Amazon: The online retailer will announce its Q2 earnings this Thursday and the fund that is most sensitive to AMZN’s earnings will be the Vanguard Consumer Discretionary ETF (NYSEARCA:VCR). VCR holds a 22.28% weighting in the stock.
YTD price action: AMZN -28.2%, and VCR -26.8%.
Apple: Rounding up the week’s mega cap earnings is AAPL and the Technology Select Sector SPDR Fund (XLK) has the strongest link to the iPhone maker. The ETF has 22.98% of its holdings tied up with AAPL.
YTD price action: AAPL -15.7% and XLK -22.4%.
In broader market news, major market averages started Monday’s trading session to the topside with the Fed headlining a very busy Wall Street week.