Intel Q4 Earnings Put These ETFs in Focus

Intel INTC reported Q4 results after market close yesterday. The world’s largest chipmaker smashed estimates for both earnings and revenues but provided a mixed outlook for the first quarter.

Shares of Intel are down 2.5% in pre-market hours at the time of writing. Given this, ETFs like First Trust Nasdaq Semiconductor ETF FTXL, iShares Semiconductor ETF SOXX, Invesco PHLX Semiconductor ETF SOXQ, First Trust NASDAQ Technology Dividend Index Fund TDIV and iShares Edge MSCI USA Value Factor ETF VLUE having the highest allocation to the world’s biggest semiconductor maker will be in focus.

Q4 Earnings in Focus

Earnings of $1.09 per share came above the Zacks Consensus Estimate of 90 cents but declined from the year-ago earnings of $1.52. Revenues were up 4% year over year at $19.5 billion and were above the estimated $18.3 billion. Although data-centric revenues rose 20%, client computing revenues dropped 7% year over year. Internet of Things Group (IOTG) and Mobileye revenues increased 36% and 7%, respectively (see: all the Technology ETFs here).

Intel has been grappling with a chip shortage. It continues to face challenges linked to persistent global supply chain problems in the upcoming quarters. Intel expects revenues of about $18.3 billion and earnings per share of 80 cents for the first quarter of 2022. Revenue guidance is well above the current Zacks Consensus Estimate of $17.5 billion while the earnings per share guidance is below the estimate of 84 cents.

ETFs to Tap

First Trust Nasdaq Semiconductor ETF (FTXL)

First Trust Nasdaq Semiconductor ETF offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL holds 30 stocks in its basket with Intel taking the top spot at 9.5% share.

First Trust Nasdaq Semiconductor ETF has accumulated $104.7 million in AUM. The average trading volume is light at around 19,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #2 (Buy).

iShares Semiconductor ETF (SOXX)

iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 43 securities in its basket with INTC taking the third spot, holding 6.8% allocation.

iShares Semiconductor ETF has amassed $8.8 billion in its asset base and trades in volume of about 1.1 million shares a day. The product charges a fee of 43 bps a year from investors and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 5 Top-Ranked Chip ETFs Worth Your Attention Now).

Invesco PHLX Semiconductor ETF (SOXQ)

Invesco PHLX Semiconductor ETF tracks the PHLX Semiconductor Sector Index, holding 30 stocks in its basket. Intel occupies the top position with 9.4% share in the basket.

Invesco PHLX Semiconductor ETF debuted in the space last year in June and has accumulated $51.5 million in its asset base. It charges 19 bps in annual fees and trades in an average daily volume of 49,000 shares.

First Trust NASDAQ Technology Dividend Index Fund (TDIV)

First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It holds about 93 securities in its basket. Of these firms, Intel takes the second spot, making up for 8.5% of the assets. From a sector look, about one-third of the portfolio is dominated by semiconductors & semiconductor equipment followed by software, technology hardware, storage & peripherals and IT services.

First Trust NASDAQ Technology Dividend Index Fund has amassed $1.8 billion in its asset base while trading in volume of around 90,000 shares per day. It charges 50 bps in annual fees.

iShares Edge MSCI USA Value Factor ETF (VLUE)

iShares Edge MSCI USA Value Factor ETF offers exposure to large- and mid-cap U.S. stocks with lower valuations based on fundamentals and tracks the MSCI USA Enhanced Value Index. It holds 149 stocks in its basket with Intel occupying the second position at 6.4% of assets.  Information technology takes the largest share at 29.8% while healthcare, consumer discretionary and communication round off the next three (read: Time to Buy Value ETFs as Volatility Grips Wall Street).

iShares Edge MSCI USA Value Factor ETF has amassed $15.8 billion in its asset base and charges 15 bps in annual fees. It trades in an average daily volume of 1.8 million shares and has a Zacks Rank #2.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
iShares Semiconductor ETF (SOXX): ETF Research Reports
 
First Trust NASDAQ Technology Dividend ETF (TDIV): ETF Research Reports
 
iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports
 
First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports
 
Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research