Sector ETFs and Earnings

The first quarter of the 2015 is in the books and it is finally time to find out how specific sectors really fared. First quarter earnings for the energy sector are expected to fall by 65 percent due to the oil crisis and continued production of U.S. shale oil. On the flip side, first quarter earnings for the health care sector are expected to increase by 10.5 percent and the financial sector should see an 8.4 percent increase in earnings in the first quarter over last year. The variety of outlooks on the future of oil prices and the energy sector as a whole has many investors' heads spinning. Many analysts see oil hovering around its current price for the rest of the year while others believe that a decreasing rig count and turmoil in the middle east will boost oil up to $70 a barrel by the end of 2015. The healthcare industry has had a great 2015 so far and is expected to continue its strong performance for the foreseeable future. Obamacare has made health care readily available to more American families than ever before, greatly increasing the sales of the largest health care companies. When the Fed decides to begin raising interest rates the one sector that should benefit are the financial service stocks. As the fed raises rates, banks will be able to charge a higher rate to loan money, in turn increasing their margins. Financials stand to benefit greatly over the next couple of years as rates increase to pre-recession levels. Below are three ETFs that track the above-mentioned sectors. The SPDR Energy ETF XLE tracks 43 of the largest companies in the energy sector. The top individual holdings include Exxon Mobil Corporation XOM making up 15.5 percent of the ETF, Chevron Corporation CVX with a 13.1 percent holding, and Schlumberger NV SLB at 7.3 percent. XLE is down 11 percent over the last 12 months, down 11 percent over the last six months, and down 1 percent year to date. The ETF has an expense ratio of 0.15 percent. The Health Care Sector SPDR ETF XLV consists of 57 companies in the health care sector. The top individual holding include Johnson & Johnson JNJ at 10.2 percent, Pfizer Inc PFE with a 7.7 percent holding, and Merck & Co Inc MRK coming in at 6 percent. XLV is up 26 percent over the last 12 months, up 12 percent over the last six months, and up 5 percent year to date. The healthcare ETF has an expense ratio of 0.15 percent. The SPDR Financials ETF XLF tracks 88 companies across eight sectors with banks at 36 percent and insurance companies at 17 percent being the most heavily weighted sectors. The top individual holdings include Berkshire Hathaway Inc. Class B BRKB making up 8.8 percent of the ETF, Wells Fargo & Company WFC at 8.5 percent, and JPMorgan Chase & Co JPM coming in at 7.6 percent. XLF is up 11 percent over the last 12 months, up 4 percent over the last six months, and down 2 percent year to date. XLF has an expense ratio of 0.15 percent.