Market Overview

Sector ETFs And Earnings

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 healthcare sector are expected to increase by 10.5 percent, and the financial sector should see an 8.4 percent increase in earnings year-over-year.

Oil And Energy

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.

The Affordable Care Act has made healthcare readily available to more American families than ever before, greatly increasing the sales of the largest healthcare companies.


When the Fed decides to begin raising interest rates, the one sector that should benefit is 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.

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Below are three ETFs that track the above-mentioned sectors.


The Energy Select Sector SPDR (ETF) (NYSE: XLE) tracks 43 of the largest companies in the energy sector.

The top individual holdings include:

  • Exxon Mobil Corporation (NYSE: XOM) making up 15.5 percent of the ETF
  • Chevron Corporation (NYSE: CVX) with a 13.1 percent holding
  • Schlumberger Limited. (NYSE: 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.

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Healthcare Sector SPDR ETF

The Health Care SPDR (ETF) (NYSE: XLV) consists of 57 companies in the healthcare sector.

The top individual holding include:

  • Johnson & Johnson (NYSE: JNJ) at 10.2 percent
  • Pfizer Inc. (NYSE: PFE) with a 7.7 percent holding
  • Merck & Co., Inc. (NYSE: 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.

SPDR Financials ETF

The Select Sector Financial Slct Str SPDR Fd (NYSE: 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 (NYSE: BRK-B) making up 8.8 percent of the ETF
  • Wells Fargo & Co (NYSE: WFC) at 8.5 percent
  • JPMorgan Chase & Co. (NYSE: 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.

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