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Intel Tops Q4 Earnings, Offers Solid Outlook: ETFs in Focus

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Sweta Killa
·4 min read
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Intel INTC reported better-than-expected Q4 results after market close yesterday. The world’s largest chipmaker smashed estimates for both earnings and revenues.

Q4 Earnings in Focus

Earnings of $1.52 per share came in at 42 cents above the Zacks Consensus Estimate and flat year over year. Revenues slid 1% year over year to $20 billion but were better than the estimated $17.47 billion. Intel said that fiscal 2020 marked the fifth consecutive year of record revenues. Robust results were driven by strong demand for PC chips. Though data-centric revenue growth dropped 16%, PC-centric revenue growth rose 9% year over year (see: all the Technology ETFs here).

Intel expects revenues of $17.5 billion and earnings per share of $1.10 for the first quarter of 2021. Both the revenue and earnings per share guidance are above the current Zacks Consensus Estimate of $16.50 billion and 97 cents, respectively.

Shares of Intel rose 6.5% before the closing bell on account of early reporting, but gave back all the gains in late trading. The stock has a Zacks Rank #3 (Hold) and VGM Score of B. It belongs to an unfavorable Zacks industry (placed at the bottom 24% of 250+ industries).

ETFs to Tap

Given this, ETFs with the highest allocation to the biggest semiconductor company will be in focus. Investors should closely monitor the movement of these funds and grab the opportunity whenever it arises.

First Trust NASDAQ Technology Dividend Index Fund TDIV

This fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. The product has amassed $1.4 billion in its asset base while trading in volume of around 76,000 shares per day. It charges 50 bps in annual fees and holds about 85 securities in its basket. Of these firms, Intel takes the fifth spot, making up for 6.8% of the assets (read: Wil Nasdaq ETFs Win in 2021 After the Best Year Since 2009?).

iShares PHLX Semiconductor ETF SOXX

This ETF follows the PHLX SOX Semiconductor Sector Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket with INTC taking the top spot at 8.4% allocation. The fund has amassed $5.4 billion in its asset base and trades in volume of about 508,000 shares a day. The product charges a fee of 46 bps a year from investors and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.

iShares Edge MSCI USA Value Factor ETF VLUE

This fund 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 148 stocks in its basket with INTC occupying the top position at 8.1% of assets. The ETF has amassed $10.9 billion in its asset base, while charges 15 bps in annual fees. It trades in average daily volume of 1 million shares and has a Zacks Rank #2 (Buy) with a Medium risk outlook.

VanEck Vectors Semiconductor ETF SMH

This fund provides exposure to 25 securities by tracking the MVIS US Listed Semiconductor 25 Index. Intel occupies the seventh position with 4.8% of the assets. The product has managed assets worth $4.7 billion and charges 35 bps in annual fees and expenses. It is heavily traded with volume of 2.4 million shares per day and has a Zacks ETF Rank #2 with a High risk outlook (read: Semiconductor ETFs Look Solid Going Into Q4 Earnings).

iShares Self-Driving EV and Tech ETF IDRV

This product gives access to companies at the forefront of self-driving and electric vehicle innovation by tracking the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index. Holding 100 stocks in its basket, Intel occupies the third position at 4% of assets. IDRV has accumulated $216.6 million in its asset base and charges 47 bps in annual fees. The ETF trades in volume of 119,000 shares per day on average (read: Guide to Electric Vehicle ETFs).

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Intel Corporation (INTC) : Free Stock Analysis Report
 
iShares PHLX Semiconductor ETF (SOXX): ETF Research Reports
 
VanEck Vectors Semiconductor ETF (SMH): ETF Research Reports
 
First Trust NASDAQ Technology Dividend ETF (TDIV): ETF Research Reports
 
iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports
 
iShares SelfDriving EV and Tech ETF (IDRV): ETF Research Reports
 
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