Earnings Excellence Shines Light on this ETF

Core Insights - The third-quarter earnings season showed strong performance with S&P 500 companies achieving an earnings per share (EPS) growth of 12.9%, surpassing the expected 8% increase [1] Group 1: WisdomTree U.S. LargeCap Fund (EPS) - The WisdomTree U.S. LargeCap Fund, valued at $1.35 billion, is closely aligned with the WisdomTree U.S. LargeCap Index, which is an earnings-weighted index of large-cap stocks [2] - The fund prioritizes companies with positive earnings, with major contributors like Alphabet, Nvidia, and Apple making up over 19% of its portfolio [3] Group 2: Market Context and Valuations - The current market environment is characterized by high valuations, making sustained earnings growth critical for maintaining these levels [4][5] - The technology sector, particularly companies involved in artificial intelligence, has been a significant driver of earnings growth, with over 41% of the EPS fund allocated to technology and communication services [5][6] Group 3: Future Earnings Projections - The consensus estimate for earnings growth among S&P 500 companies is projected at 10% for 2025 compared to 2024, and 13.2% for 2026 compared to 2025 [8] - The upcoming fourth-quarter earnings season is anticipated to be strong, potentially enhancing the EPS fund's performance [7]