Yahoo Finance Alibaba's Q4 Earnings Put These ETFs in Focus
Alibaba Group BABA reported robust fourth-quarter fiscal 2023 results before the opening bell on May 18, wherein it beat earnings estimates but missed on revenues.
Following the results, shares of Alibaba tumbled 5.4%. This has put the ETFs with the largest allocation to the Chinese e-commerce giant in focus. These include ProShares Online Retail ETF ONLN, ProShares Long Online/Short Stores ETF CLIX, First Trust International Equity Opportunities ETF FPXI, Invesco Golden Dragon China ETF PGJ and Global X Emerging Markets Internet & E-commerce ETF EWEB.
Earnings of $1.56 per ADS surpassed the Zacks Consensus Estimate of $1.30 and increased 35% from the year-ago earnings. Revenues grew 2% year over year to $30.32 billion but fell short of the consensus mark of $30.35 billion. The revenue growth marks the worst pace of growth since the company was listed in 2014.
Alibaba announced its plan to spin off its cloud division as a newly listed company, subject to restructuring certain assets, liabilities and contracts, and regulatory approvals (see: all the Technology ETFs here).
ETFs in Focus
ProShares Online Retail ETF (ONLN)
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels, and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 25 stocks in its basket. Alibaba is the second firm, accounting for 12.5% of the portfolio (read: Amazon Beats Q1 Earnings, Shares Dive: 5 ETFs Worth Watching).
ProShares Online Retail ETF has amassed $96.5 million in its asset base and currently trades in a moderate volume of around 17,000 shares a day, on average. It charges 58 bps in annual fees from investors.
ProShares Long Online/Short Stores ETF (CLIX)
ProShares Long Online/Short Stores ETF seeks to benefit from both outperforming online and underperforming physical retailers through the long/short strategy. It combines the 100% long position in retailers that primarily sell online or through other non-store channels with a 50% short position in those that rely principally on physical stores by tracking the performance of the ProShares Long Online/Short Stores Index.
With long positions in 25 stocks and short positions in 39 stocks, ProShares Long Online/Short Stores ETF has accumulated $18.2 million in its asset base and has 0.65% in expense ratio.
First Trust International Equity Opportunities ETF (FPXI)
First Trust International Equity Opportunities ETF provides exposure to the largest and most liquid companies that are domiciled outside the United States by tracking the IPOX International Index. Holding 50 stocks in its basket, Alibaba occupies the third position with an 8.5% allocation. About 14% of the portfolio is skewed toward Chinese firms while German and Japanese firms account for 12.4% and 10.7% share, respectively, in the basket. From a sector look, consumer discretionary takes the largest share at 38.4%, closely followed by health care and industrials.
First Trust International Equity Opportunities ETF has managed $204.9 million in its asset base and charges 70 bps in fees per year. Volume is light, exchanging about 40,000 shares in hand on average. FPXI has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
Invesco Golden Dragon China ETF (PGJ)
Invesco Golden Dragon China ETF follows the NASDAQ Golden Dragon China Index, which offers exposure to the U.S. exchange-listed companies headquartered or incorporated in the People’s Republic of China. It holds a basket of 64 stocks, with Alibaba occupying the top position at 8.8% of assets. Consumer discretionary and communication services sectors take the largest share at 53.2% and 25.6%, respectively (read: Alibaba's AI Launch Puts These ETFs in Spotlight).
Invesco Golden Dragon China ETF has AUM of $196.8 million and charges 70 bps in annual fees. It trades in an average daily volume of 54,000 shares and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Global X Emerging Markets Internet & E-commerce ETF (EWEB)
Global X Emerging Markets Internet & E-commerce ETF seeks to invest in companies positioned to benefit from the increased adoption of Internet and E-commerce technologies in emerging markets. It tracks the Nasdaq CTA Emerging Markets Internet & E-commerce Net Total Return Index, holding 42 stocks in its basket. Out of these, Alibaba takes the third spot with an 8.02% share. Consumer discretionary and communication services are the top two sectors, with 51.6% and 36.6%, respectively. About 62.2% of the portfolio is dominated by China, with South Korea and South Africa rounding off the next two spots.
Global X Emerging Markets Internet & E-commerce ETF has accumulated $2.6 million in its asset base and trades in an average daily volume of 1,000 shares. It charges 65 bps in fees per year and has a Zacks ETF Rank #4 (Sell).
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Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
First Trust International Equity Opportunities ETF (FPXI): ETF Research Reports
Invesco Golden Dragon China ETF (PGJ): ETF Research Reports
ProShares Long Online/Short Stores ETF (CLIX): ETF Research Reports
ProShares Online Retail ETF (ONLN): ETF Research Reports
Global X Emerging Markets Internet & E-commerce ETF (EWEB): ETF Research Reports
