Five Critical ETFs For Q1 Earnings

Thursday marks the end of the first quarter and while fund managers may be busy doing some end-of-quarter window dressing, the astute trader will take this opportunity to evaluate trades that have the potential to be in the limelight as the earnings spigot starts to flow over the next several weeks. Obviously, the world of ETFs offers plenty of options in terms of earnings plays, so this list is by no means complete. It merely represents five of the better ideas for earnings plays from the ETF arena. 1) Energy Select Sector SPDR XLE: XLE has alread gained 17% this quarter and the chart shows an ETF that doesn't know how to go done, but there is probably some gas left in this fund's tank (no pun intended). XLE is chock full of companies that benefit from higher oil prices and with Exxon Mobil XOM and Chevron CVX accounting for almost 30% of XLE's weight, this is a great way to play big earnings from big oil. Not to mention, Chevron and Exxon usually boost their dividends after reporting first-quarter earnings. 2) Oil Services HOLDRs OIH: See above. Oil services companies are even more intimately correlated to risng oil prices than integrated oil companies, meaning OIH constituents should deliver some stellar Q1 results. OIH is not a dividend play, but the details to watch for as OIH holdings report include rig fleet updates, demand in global markets and any comments on expecations for new deepwater drilling projects in the Gulf of Mexico. 3) iShares Dow Jones Transportation Average IYT: If FedEx FDX is any indication, some of IYT's constituents are going to be vulnerable to rising oil prices, but that theme is widely known at this point. Beyond that, the most interesting reports should come from the railroad operators that make up a significant portion of IYT's weight. How much coal and other raw materials are these companies hauling? Are shipments of autos and construction materials picking up? In addition, we could see some positive dividend news out of the railroad firms. 4) Industrial Select Sector SPDR XLI: Any industrial-focused ETF will do because these companies are great ways to gauge the overall performance of the U.S. and global economies. Stocks like Caterpillar and 3M MMM have been leading the Dow higher and bullish Q1 results and full-year guidance could keep that trend in tact. 5) PowerShares QQQ Trust QQQ: Alright, we know that Research In Motion RIMM didn't set the world on fire with its latest earnings report and it's probably safe to say Apple AAPL will knock the cover off the ball yet again, but about the rest of the key members of the Nasdaq 100? More reports like what we saw out of Oracle ORCL would go a long way toward helping tech resume its leadership role and likely boost the broader market higher in the process.