Core Insights - The third-quarter 2025 earnings season is commencing, with key reports from companies like Pepsi and Delta Airlines expected this week [1] - 19 S&P 500 members have already reported fiscal results for the August quarter, including FedEx and Oracle, with major banking earnings set to start mid-October [2] - Q3 earnings are projected to increase by 5.5% year-over-year, supported by a 6.1% rise in revenues, following strong growth rates in the previous two quarters [3][4] Earnings Growth Projections - Six out of the 16 Zacks sectors are expected to report earnings above the previous year's levels in Q3, with total S&P 500 earnings anticipated to grow by 9.5% for the entire year [5] - Aerospace sector is projected to see a remarkable 248.9% earnings growth with a 10.1% increase in revenues for Q3 [6] - Technology sector is expected to achieve 12% earnings growth alongside 12.7% revenue growth in Q3, following strong performance in Q2 [7] - Finance sector is forecasted to experience 10.1% earnings growth with 5.8% revenue growth in Q3 [8] Sectors Expected to Decline - Auto sector is anticipated to face a significant earnings decline of 31.8% due to a 4.9% drop in revenues [9] - Construction sector is projected to lose 13.7% in earnings despite a slight revenue increase of 1.0% [10] - Transportation sector is expected to see a 7.7% earnings loss attributed to a 0.3% revenue decline [11]

Core Insights - The U.S. stock market appears calm with the VIX at around 16, but significant uncertainties remain [1][2] - Ongoing U.S. government shutdown risks and recent Federal Reserve interest rate cuts create a complex market environment [2] - Risk-averse investors may prefer ETFs over individual stocks to mitigate potential losses from company-specific issues [3][4] ETF Advantages - ETFs provide instant diversification, spreading risk across multiple stocks, which helps moderate volatility [5] - They combine diversification with liquidity and transparency, allowing for quick adjustments to market conditions [5] - Sector-specific ETFs enable cautious investors to engage in market gains while limiting exposure to individual company risks [6] Attractive Sectors for Q4 - The Technology sector remains appealing for capital appreciation despite challenges from high interest rates [7] - The Utilities sector offers stability and reliable dividends, making it a classic defensive investment [8] - Financial stocks may benefit from rate cuts, potentially enhancing lending activity and net interest margins [8] Top ETFs to Consider - **Technology Select Sector SPDR ETF (XLK)**: Focuses on tech industries with top holdings in Nvidia (14.86%), Microsoft (12.57%), and Apple (12.33%); gained 22.4% year-to-date [10][11] - **Utilities Select Sector SPDR ETF (XLU)**: Includes electric and water utilities with top holdings in NextEra Energy (11.58%) and The Southern Company (7.77%); surged 16.4% year-to-date [12][13] - **Financial Select Sector SPDR ETF (XLF)**: Covers financial services with top holdings in Berkshire Hathaway (11.92%), JP Morgan Chase (11.21%), and Visa (7.50%); increased 10.5% year-to-date [14]

Core Insights - The Pacer Data and Digital Revolution ETF (TRFK) launched on June 8, 2022, aims to provide broad exposure to the Technology - Broad segment of the equity market [1] - The ETF has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1] Fund Overview - TRFK is sponsored by Pacer ETFs and has accumulated over $203.34 million in assets, positioning it as an average-sized ETF in its category [3] - The fund seeks to match the performance of the PACER DATA TRANSMISN & COMM REVOLUTN INDEX, focusing on companies deriving at least 50% of their revenues from data-related activities [4] Cost Structure - The annual operating expense ratio for TRFK is 0.49%, which is competitive with most peer products in the ETF space [5] Sector Exposure and Holdings - The ETF has a significant allocation in the Information Technology sector, comprising approximately 92.3% of the portfolio [6] - Broadcom Inc (AVGO) is the largest holding at about 10.02%, followed by Nvidia Corp (NVDA) and Oracle Corp (ORCL) [6] - The top 10 holdings represent around 57.39% of total assets under management [7] Performance Metrics - As of October 2, 2025, TRFK has returned approximately 35.27% year-to-date and 49.25% over the past year [8] - The fund has traded between $38.975 and $68.34 in the last 52 weeks, with a beta of 1.29 and a standard deviation of 27.58% over the trailing three-year period [8] Investment Alternatives - TRFK holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong potential for investors seeking exposure to Technology ETFs [9] - Other notable ETFs in the sector include Technology Select Sector SPDR ETF (XLK) with $90.65 billion in assets and Vanguard Information Technology ETF (VGT) with $108.42 billion [10]

Economic Outlook - The Federal Reserve has upgraded its U.S. economic growth outlook, expecting GDP to rise 1.6% in 2025, accelerating to 1.8% in 2026 and 1.9% in 2027 [2] - The Fed's dovish stance has led to increased optimism on Wall Street, with strategists from Wells Fargo, Barclays, and Deutsche Bank raising their S&P 500 targets due to resilient earnings, the AI investment cycle, and the prospect of lower rates [3] Market Performance - The S&P 500 has gained about 3.40% so far in September, rebounding around 33% since early April [1] - The S&P Global US PMI Composite Output Index was at 54.6 in August, indicating solid U.S. growth despite a slight decrease from July's 55.1 [5] - Financials and technology sectors were highlighted as top performers in August, contributing to the recent gains in the S&P 500 [5] Sector ETFs - The Technology Select Sector SPDR ETF (XLK) has gained 13.73% over the past three months and 19.87% over the past year, with major allocations to Microsoft (MSFT) and Apple (AAPL) [7] - The Financial Select Sector SPDR ETF (XLF) has gained 6.34% over the past three months and 19.81% over the past year, with significant exposure to JPMorgan Chase & Co. (JPM) [8] - The Industrial Select Sector SPDR ETF has gained 6.67% over the past three months and 17.23% over the past year, with RTX Corporation also included in its holdings [10] Health Care Sector - The Health Care Select Sector SPDR ETF (XLV) has an asset base of $33.76 billion and charges an annual fee of 0.08%, with top allocations to Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV) [11] - Despite a 10.55% decline over the past year, the Health Care Select Sector SPDR ETF has gained 2.54% quarter to date and 0.27% month to date [10][12]

Core Viewpoint - The iShares Expanded Tech Sector ETF (IGM) offers broad exposure to the Technology - Broad segment of the equity market, appealing to both institutional and retail investors due to its low cost and transparency [1][2]. Group 1: ETF Overview - IGM is a passively managed ETF launched on March 13, 2001, with assets exceeding $8.63 billion, making it one of the largest ETFs in its category [1][3]. - The ETF aims to match the performance of the S&P North American Technology Sector Index, which includes North American equities in technology and select equities from communication services and consumer discretionary sectors [3][4]. Group 2: Costs and Performance - The annual operating expenses for IGM are 0.39%, positioning it as a cost-effective option in the ETF space, with a 12-month trailing dividend yield of 0.22% [5]. - The ETF has gained approximately 14.96% year-to-date and 26.17% over the past year, with a trading range between $79.8 and $119.02 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - IGM has a significant allocation of about 76.3% in the Information Technology sector, followed by Telecom [6]. - Nvidia Corp (NVDA) constitutes about 9.8% of total assets, with the top 10 holdings accounting for approximately 58.28% of total assets under management [7]. Group 4: Risk and Alternatives - The ETF has a beta of 1.27 and a standard deviation of 24.75% over the trailing three-year period, indicating a medium risk profile [8]. - IGM holds a Zacks ETF Rank of 2 (Buy), suggesting it is a favorable option for investors seeking exposure to the Technology ETFs segment [9].

Core Viewpoint - The First Trust Technology AlphaDEX ETF (FXL) offers a low-cost, transparent, and flexible investment option for gaining exposure to the Technology - Broad segment of the equity market, appealing to both institutional and retail investors [1][2]. Fund Overview - FXL, launched on May 8, 2007, has accumulated over $1.37 billion in assets, positioning it as one of the larger ETFs in the Technology - Broad segment [3]. - The ETF aims to match the performance of the StrataQuant Technology Index, which utilizes a modified equal-dollar weighted methodology to select stocks from the Russell 1000 Index [4]. Cost Structure - The annual operating expenses for FXL are 0.6%, which is competitive within its peer group, and it has a trailing dividend yield of 0.03% [5]. Sector Exposure and Holdings - Approximately 80.2% of FXL's portfolio is allocated to the Information Technology sector, with Industrials and Telecom also being significant sectors [6]. - The top holdings include Palantir Technologies Inc. (2.28% of total assets), Reddit, Inc., and Amphenol Corporation, with the top 10 holdings comprising about 18.42% of total assets [7]. Performance Metrics - As of September 1, 2025, FXL has increased by approximately 7.95% year-to-date and 18.88% over the past year, with a trading range between $115.28 and $162.699 in the last 52 weeks [8]. - The ETF has a beta of 1.16 and a standard deviation of 24.15% over the trailing three-year period, indicating a medium risk profile [8]. Alternatives - FXL holds a Zacks ETF Rank of 2 (Buy), suggesting it is a strong option for investors looking for exposure to Technology ETFs [9]. - Other notable ETFs in the sector include the Technology Select Sector SPDR ETF (XLK) and the Vanguard Information Technology ETF (VGT), with XLK having $83.99 billion in assets and VGT $99.65 billion [11].

Core Viewpoint - The Invesco S&P 500 Equal Weight Technology ETF (RSPT) offers a smart beta investment strategy that provides broad exposure to the technology sector, aiming to outperform traditional market cap weighted ETFs [1][5]. Group 1: Fund Overview - RSPT was launched on November 1, 2006, and has accumulated over $3.68 billion in assets, making it one of the larger ETFs in the technology category [1][5]. - The ETF seeks to match the performance of the S&P 500 Equal Weight Information Technology Index, which equally weights stocks in the information technology sector [5]. Group 2: Cost and Performance - RSPT has an annual operating expense ratio of 0.40% and a 12-month trailing dividend yield of 0.20%, positioning it as one of the cheaper options in the market [6]. - The ETF has gained approximately 11.74% and was up about 13.37% year-to-date as of August 28, 2025, with a trading range between $29.52 and $42.09 over the past 52 weeks [9]. Group 3: Holdings and Sector Exposure - RSPT's portfolio is entirely allocated to the Information Technology sector, with Arista Networks Inc (ANET) making up about 2.09% of total assets, followed by Advanced Micro Devices Inc (AMD) and Oracle Corp (ORCL) [7][8]. - The top 10 holdings constitute approximately 18.88% of total assets under management [8]. Group 4: Risk and Diversification - The ETF has a beta of 1.22 and a standard deviation of 23.23% over the trailing three-year period, indicating a higher level of volatility compared to the market [10]. - With around 70 holdings, RSPT effectively diversifies company-specific risk [10]. Group 5: Alternatives - Other ETFs in the technology space include the Technology Select Sector SPDR ETF (XLK) and the Vanguard Information Technology ETF (VGT), which have significantly larger asset bases of $84.48 billion and $100.19 billion, respectively [12]. - XLK has a lower expense ratio of 0.08%, while VGT charges 0.09% [12].

Core Insights - The Invesco S&P SmallCap Information Technology ETF (PSCT) is a passively managed ETF launched on April 7, 2010, providing broad exposure to the Technology - Broad segment of the equity market [1] - Sector ETFs like PSCT offer low risk and diversified exposure to a group of companies within specific sectors, with Technology - Broad currently ranked 5th among 16 Zacks sectors [2] Fund Overview - PSCT is sponsored by Invesco and has assets exceeding $262.51 million, positioning it as an average-sized ETF aiming to match the performance of the S&P SmallCap 600 Capped Information Technology Index [3] - The ETF's annual operating expenses are 0.29%, making it one of the least expensive options in its category, with a 12-month trailing dividend yield of 0.02% [4] Holdings and Sector Exposure - The ETF is fully allocated to the Information Technology sector, with Qorvo Inc (QRVO) representing approximately 4.62% of total assets, followed by Badger Meter Inc (BMI) and Sandisk Corp/de (SNDK) [5] - The top 10 holdings constitute about 34.02% of total assets under management [6] Performance Metrics - As of August 20, 2025, PSCT has experienced a loss of about 2.78% year-to-date and is down approximately 1% over the past year, with a trading range between $34.03 and $51.53 in the last 52 weeks [7] - The ETF has a beta of 1.20 and a standard deviation of 26.56% over the trailing three-year period, indicating a higher risk profile [7] Investment Alternatives - PSCT holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns, expense ratio, and momentum, making it a strong option for investors seeking exposure to Technology ETFs [8] - Other alternatives in the space include the Technology Select Sector SPDR ETF (XLK) with $83.62 billion in assets and an expense ratio of 0.08%, and the Vanguard Information Technology ETF (VGT) with $98.55 billion in assets and an expense ratio of 0.09% [9]

Core Viewpoint - The SPDR NYSE Technology ETF (XNTK) is a passively managed ETF that provides broad exposure to the Technology - Broad segment of the equity market, appealing to both institutional and retail investors due to its low cost and tax efficiency [1][2]. Group 1: Fund Overview - XNTK was launched on September 25, 2000, and has accumulated over $1.24 billion in assets, making it one of the larger ETFs in its category [1][3]. - The ETF aims to match the performance of the NYSE Technology Index, which includes 35 leading U.S.-listed technology companies [3]. Group 2: Costs and Performance - The annual operating expense ratio for XNTK is 0.35%, positioning it as one of the least expensive options in the ETF space [4]. - The ETF has a 12-month trailing dividend yield of 0.32% [4]. - Year-to-date, XNTK has gained approximately 20.99%, and it is up about 28.52% over the past year, with a trading range between $164.461 and $246.83 in the last 52 weeks [7]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of about 70.6% in the Information Technology sector, with Consumer Discretionary and Telecom as the next largest sectors [5]. - Palantir Technologies Inc A (PLTR) constitutes around 5% of total assets, followed by Uber Technologies Inc (UBER) and Netflix Inc (NFLX), with the top 10 holdings making up approximately 34.69% of total assets [6]. Group 4: Alternatives and Rankings - XNTK holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns and momentum [8]. - Other alternatives in the technology ETF space include the Technology Select Sector SPDR ETF (XLK) and the Vanguard Information Technology ETF (VGT), which have significantly larger asset bases of $85.15 billion and $100.28 billion, respectively [9].

Core Viewpoint - The Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed ETF that provides broad exposure to the Technology sector, appealing to both retail and institutional investors due to its low costs and tax efficiency [1][3]. Group 1: ETF Overview - FTEC was launched on October 21, 2013, and has accumulated over $15.05 billion in assets, making it one of the largest ETFs in the Technology sector [3]. - The ETF aims to match the performance of the MSCI USA IMI Information Technology Index, which reflects the U.S. information technology sector [3]. Group 2: Costs and Performance - FTEC has an annual operating expense ratio of 0.08%, positioning it as one of the least expensive options in the market, with a 12-month trailing dividend yield of 0.43% [4]. - Year-to-date, FTEC has increased by approximately 12.84%, and over the last 12 months, it has risen by about 23.07% [7]. Group 3: Sector Exposure and Holdings - The ETF is heavily concentrated in the Information Technology sector, with about 99.9% of its portfolio allocated to this sector [5]. - Nvidia Corp (NVDA) constitutes around 17.21% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL), with the top 10 holdings making up about 59.54% of total assets [6]. Group 4: Risk and Alternatives - FTEC has a beta of 1.25 and a standard deviation of 24.87% over the trailing three-year period, indicating a medium risk profile [7]. - The ETF holds a Zacks ETF Rank of 1 (Strong Buy), suggesting strong expected returns based on various factors [8].