Information Technology NEws

ETF Asset Report of May

The month of May was all about the gradual reopening of global economies and relentless research on coronavirus vaccines as well as some positive outcomes on it. Moderate corporate earnings have also led to market strength.  The energy market staged a comeback too. Key U.S. indexes were in the green in the month. In this scenario, we highlight ETF asset flows for the month of May.

High-Yield Bond ETFs Top

Risk-on sentiments and the Fed’s monetary favor are working wonders for the segment.In mid-April, the Fed said it would expand its bond-buying program to include debt that was investment-grade rated as of Mar 22 but was later downgraded to no lower than BB-, or three levels into high yield. The very move made iShares iBoxx USD High Yield Corporate Bond ETF HYG appealing and it added about $4.38 billion in assets in May. SPDR Bloomberg Barclays High Yield Bond ETF

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Should Wise Talent Information Technology Co., Ltd’s (HKG:6100) Weak Investment Returns Worry You?

Today we are going to look at Wise Talent Information Technology Co., Ltd (HKG:6100) to see whether it might be an attractive investment prospect. Specifically, we’ll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires.

First, we’ll go over how we calculate ROCE. Second, we’ll look at its ROCE compared to similar companies. And finally, we’ll look at how its current liabilities are impacting its ROCE.

Understanding Return On Capital Employed (ROCE)

ROCE measures the ‘return’ (pre-tax profit) a company generates from capital employed in its business. Generally speaking a higher ROCE is better. Overall, it is a valuable metric that has its flaws. Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since ‘No two businesses are exactly alike.

How Do You Calculate Return

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QQQ Joins An Elite Club

  • Last week, the Invesco QQQ Trust (QQQ) crossed the $100 billion in assets mark, joining three S&P 500-based ETFs and a total stock market offering from Vanguard.
  • While thought of as an information technology ETF, more than half of QQQ’s assets are from other sectors. CFRA finds many of the stocks inside to be attractively valued and having underappreciated earnings potential.
  • CFRA thinks it could be three or more years before another fund joins the $100 billion club given competitive pressure and modest returns for bond funds. But actions by the Federal Reserve could boost one fund into the upper echelon.

QQQ Joins $100B Asset Club
QQQ reached the $100 billion assets under management threshold last week, according to ETF data from First Bridge, aided by a 12% total return in the past month and a strong $9 billion of net inflows this year. The fund is the fifth largest

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Virtusa (VRTU) Lags Q4 Earnings and Revenue Estimates

Virtusa (VRTU) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -30.51%. A quarter ago, it was expected that this provider of information technology services would post earnings of $0.76 per share when it actually produced earnings of $0.78, delivering a surprise of 2.63%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Virtusa, which belongs to the Zacks Computer – Services industry, posted revenues of $329.65 million for the quarter ended March 2020, missing the Zacks Consensus Estimate by 0.10%. This compares to year-ago revenues of $327.63 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock’s immediate price

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