We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: First Trust NASDAQ, Guggenheim Solar, iShares U.S. Aerospace, Spirited Funds and iShares U.S. Consumer
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 6, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report) , Guggenheim Solar ETF (TAN - Free Report) , iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Spirited Funds/ETFMG Whiskey & Spirits ETF and iShares U.S. Consumer Services ETF (IYC - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Trump Tariffs Put These Sector ETFs in Focus
Trump’s announcement that the United States will impose a 25% tariff on steel imports and a 10% tariff on aluminum imports has become the latest cause of concern for the U.S. economy and Wall Street. The tariffs are likely to result in an increase in raw material cost for manufacturers that use these metals.
Both steel and aluminum are vital to the production of cars and trucks sold in America and would push up the sale prices of those vehicles considerably. The American Automotive Policy Council believes that the change would put the U.S. auto industry at a "competitive disadvantage."
However, the price hike won’t be the same for all. In this situation, First Trust NASDAQ Global Auto Index Fund should be monitored closely. However, since the fund invests only 19.67% in the United States, severe threat to the product is unexpected (read: ETFs in Focus Post Automobile Earnings).
Alternative Energy
Solar projects, wind turbines and energy storage units are also likely to be pricier. The tariff could result in a hike in the cost of offshore platforms and pipelines. In any case, the Trump administration's 30% tariff on imported solar cells and modules was put into effect this year (read: Trump's Import Tariffs: ETF & Stocks in Focus).
U.S. aerospace industry thrives on steel and aluminum imports to construct aircraft. About 80% of an aircraft is made of aluminum. Aerospace and defense ETFs like iShares U.S. Aerospace & Defense ETF may also feel the pinch.
Beer
Last but not least, how can investors forget the beer industry? Imported aluminum is used to make beer cans. The announcement puts Spirited Funds/ETFMG Whiskey & Spirits ETF in focus.
Consumer
Along with most market watchers, we too believe that companies will try to pass on some cost escalation to consumers. As a result, consumer ETFs like iShares U.S. Consumer Services ETF may get slightly hurt.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: First Trust NASDAQ, Guggenheim Solar, iShares U.S. Aerospace, Spirited Funds and iShares U.S. Consumer
For Immediate Release
Chicago, IL – March 6, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report) , Guggenheim Solar ETF (TAN - Free Report) , iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Spirited Funds/ETFMG Whiskey & Spirits ETF and iShares U.S. Consumer Services ETF (IYC - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Trump Tariffs Put These Sector ETFs in Focus
Trump’s announcement that the United States will impose a 25% tariff on steel imports and a 10% tariff on aluminum imports has become the latest cause of concern for the U.S. economy and Wall Street. The tariffs are likely to result in an increase in raw material cost for manufacturers that use these metals.
Against this backdrop, with the help of an article published on npr.org, we highlight some sectors that could be impacted the most from the tariffs (read: Watch These ETFs as Trade War Risks Rise).
Auto
Both steel and aluminum are vital to the production of cars and trucks sold in America and would push up the sale prices of those vehicles considerably. The American Automotive Policy Council believes that the change would put the U.S. auto industry at a "competitive disadvantage."
However, the price hike won’t be the same for all. In this situation, First Trust NASDAQ Global Auto Index Fund should be monitored closely. However, since the fund invests only 19.67% in the United States, severe threat to the product is unexpected (read: ETFs in Focus Post Automobile Earnings).
Alternative Energy
Solar projects, wind turbines and energy storage units are also likely to be pricier. The tariff could result in a hike in the cost of offshore platforms and pipelines. In any case, the Trump administration's 30% tariff on imported solar cells and modules was put into effect this year (read: Trump's Import Tariffs: ETF & Stocks in Focus).
Now with extra price increases on steel and aluminum, “which are used in ground-mount and rooftop solar racking systems,” the sector could be hit hard. Alternative ETFs including Guggenheim Solar ETF should thus be followed with extra caution (read: Alternative Energy ETFs to Gain From First Solar Q4 Results).
Aerospace
U.S. aerospace industry thrives on steel and aluminum imports to construct aircraft. About 80% of an aircraft is made of aluminum. Aerospace and defense ETFs like iShares U.S. Aerospace & Defense ETF may also feel the pinch.
Beer
Last but not least, how can investors forget the beer industry? Imported aluminum is used to make beer cans. The announcement puts Spirited Funds/ETFMG Whiskey & Spirits ETF in focus.
Consumer
Along with most market watchers, we too believe that companies will try to pass on some cost escalation to consumers. As a result, consumer ETFs like iShares U.S. Consumer Services ETF may get slightly hurt.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.