3 ETFs To Play For The Week Ahead: REITs, Chips And More

Earnings season is winding down, but there are some reports coming in the week ahead that could affect the following exchange traded funds. Plus, the new coronavirus issue continues to dominate the headlines and that could factor into the near-term outloo

Benzinga · 02/10/2020 15:06

Earnings season is winding down, but there are some reports coming in the week ahead that could affect the following exchange traded funds. Plus, the new coronavirus issue continues to dominate the headlines and that could factor into the near-term outlook for some of these funds, too.

VanEck Vectors Mortgage REIT Income ETF (MORT)

Mortgage real estate investment trusts, or mREITs, have been bolstered by today's low interest rate environment, one that increases the allure of high-yielding assets. And yes, the VanEck Vectors Mortgage REIT Income ETF (NYSE: MORT) qualifies as that with a 30-day SEC yield of 9.13%.

Home to nearly $224 million in assets under management, MORT follows the e MVIS US Mortgage REITs Index (MVMORTTG), “which is intended to track the overall performance of U.S. mortgage real estate investment trust,” according to VanEck.

Normally, MORT is more of a longer-term idea, but the fund bears monitoring this week because its largest holding, Annaly Capital Management (NASDAQ: NLY), reports earnings after the bell on Wednesday. That stock accounts for 12.77% of MORT's or about 370 basis points more than the ETF's second-largest holding.

iShares PHLX Semiconductor ETF (SOXX)

The iShares PHLX Semiconductor ETF (NASDAQ: SOXX) is up less than 1% to start 2020, but this benchmark chip fund could be starting to perk up. Additionally, there are earnings-related catalysts for SOXX this week.

Applied Materials (NASDAQ: AMAT) reports early in the week before Nvidia (NASDAQ: NVDA) reports on Thursday after the close. The Nvidia report is notable for SOXX investors because that stock is the ETF's largest holding at a weight of 8.42%.

Emerging Markets Internet & Ecommerce ETF (EMQQ)

Due to the new coronavirus, which has claimed more lives than the SARS epidemic, has been a drag on emerging markets assets to start the year. Traditional emerging markets assets that is because while the MSCI Emerging Markets Index is lower by more than 3%, the Emerging Markets Internet & Ecommerce ETF (NYSE: EMQQ) is higher by more than 4%.

EMQQ's ability to keep generating near-term upside will be tested in the form of earnings reports in the week ahead. On Thursday, its Alibaba (NYSE: BABA). On Friday, it's the Google of Russia, Yandex (NASDAQ: YNDX). Those stocks combine for 11% of EMQQ's weight.

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