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All three major stock market indexes closed yesterday’s regular session at record highs, marking gains for five straight trading days, driven primarily by strong corporate earnings. According to a FactSet report, among the S&P 500 companies that have reported second-quarter results as of July 23, 88% beat the consensus EPS estimates, which compares to a 75% five-year average.
The market is expected to continue rallying in the near term, with promising results expected from the big techs this week. Therefore, we think it could be wise to bet on quality ETFs—Invesco QQQ Trust (QQQ), iShares Trust – iShares Russell 2000 ETF (IWM), and ARK ETF Trust – ARK Innovation ETF (ARKK)—that have a high beta. These ETFs have the potential to generate higher-than-market returns in the near term.
