Lara Crigger, editor-in-chief of VettaFi, recently appeared on TD Ameritrade to discuss profits to look for this week with FAANG company reports as well as the upcoming Fed meeting with host Nicole Petallides.

Major FAANG companies are reporting this week with Microsoft (MSFT) and Alphabet (GOOGL) reporting on Tuesday, Meta (META) on Wednesday, and Amazon (AMZN) and Apple (AAPL) both reporting earnings on Thursday. The Federal Reserve meeting with expectations of another 0.75% interest rate hike is also ahead.

“I think a lot of investors will be watching earnings week for clues about where companies are headed, including big FAANG stocks,” Crigger explained. “All of this is important from an ETF perspective, as FAANGs are nearly ubiquitous building blocks in ETF portfolios.”

These stocks are included in a range of ETFs, not only in technology but also in ESG, thematic and growth ETFs and, as they are likely to feature in most portfolios, it is a week of earnings to which advisors and investors should pay attention to.

The SPDR Technology Sector Fund (XLK) is an ETF to watch as Apple and Microsoft make up nearly half of the fund and it is heavily impacted by FAANG earnings. The fund is down almost 20% since the start of the year, but rebounded around 9% last month. Crigger sees an opportunity and an attractive entry point for any investor who may be looking to capture any upside potential in the space.

The Vanguard Communications Services ETF (VOX) is another potential area of ​​opportunity and although it represents 12% of Alphabet, it offers broader diversification than XLK across all market caps. The fund is down 26% year-to-date, but rebounded nearly 7% last month.

“This is another fund where valuations have come down to a more reasonable level and may look more attractive to investors at this time,” Crigger said.

🔎 Find opportunities and avoid risks ⚠️

As this big winning week begins, @Vetta_Fi Chief Editor @LaraCrigger Converse with @NPetallides about a few ETFs that offer investors exposure to FAANG, tech, crypto, and more. : https://t.co/FoGzlOBNHU

— TD Ameritrade Network (@TDANetwork) July 25, 2022

The discussion focused on the recent launch of leveraged and single-stock inverse ETFs, in particular the AXS TSLA Daily Bear ETF (TSLQ) which saw a good amount of streams ($100 million) in its first week since launch. These types of derivatives have been a point of interest for advisors on VettaFi platforms, Crigger explained.

“These funds, these leveraged single-equity ETFs like TSLQ, have the potential to be a trader’s dream. They are perfect for times like this, expressing expectations of earnings seasons or taking advantage of big market shocks,” Crigger said.

For more news, insights, and strategy, visit VettaFi.