Decode the Q1 Earnings Wave Through ETFs

While the markets are generally fixated on what the Magnificent Seven is doing in terms of first-quarter earnings, there are other names investors may want to track. This morning’s earnings bonanza was highlighted by names like Coca-Cola (KO), BP p.lc. (BP), Spotify (SPOT), General Motors (GM), and United Parcel Service (UPS).

These aforementioned names are also market leaders, adding some context on what a specific sector may be doing. In totality, it also indicates how well the whole economy is doing. In that case, it’s helpful to keep track of the exchange-traded funds (ETFs) with the heaviest allocations of these stocks. Today’s earnings, in particular, provided a pulse on consumer demand, energy resilience, digital media, and logistics.

Key Takeaways:

• While tech giants dominate headlines, broad earnings beats from Coca-Cola, GM, and UPS signal a resilient U.S. economy, proving that consumer demand and B2B activity remain healthy across multiple sectors.

• Leaders are prioritizing efficiency over sheer scale. Coca-Cola used pricing power to offset costs, while UPS and GM focused on operational strategies to deliver significant EPS surprises.

• Investors can capture this momentum with ETFs.

See more: Key Tech Earnings Drop This Week: Is Your Tech Fund Delivering?

Consumer & Energy Resilience

Coca-Cola provided a jolt of caffeine to kick off the morning’s earnings with an earnings per share (EPS) of $0.86, which beat out consensus estimates of $0.81. Revenue grew 11.4% year-over-year to $12.47 billion thanks to unit case growth in combination with strategic price increases. Looking ahead, the beverage giant raised its full-year guidance, which signaled confidence in its consumer-centric digital approach.

Top three ETFs with heaviest weighting of Coke:

The ebbs and flows of a dynamic oil market is certainly keeping investors focused on the energy sectors. Given the rising tide of oil prices as of late, BP reported a robust underlying net income of $3.2 billion while beating EPS estimates of $0.93 with reported EPS of $1.24. Despite geopolitical disruptions, the company mentioned that its customers and products segment saw recorded profits jump to $3.2 billion, which marked its highest level since 2022.

Top three ETFs with heaviest weighting of BP:

Tech & Industrial Pivot

Moving on to tech and specifically, digital media. Swedish audio streamer Spotify recorded an EPS beat, reporting $3.45 against a $2.95 forecast. While revenue grew 8% compared to last year and monthly active users reached 761 million (a 12% bump year over year), its guidance did suggest uncertainty.

Top three ETFs with heaviest weighting of Spotify:

General Motors impressed by raising its full-year EBIT-adjusted guidance to a range of $13.5 billion and $15.5 billion. The automaker reported Q1 revenue of $43.6 billion, which was bolstered by a favorable Supreme Court ruling regarding U.S. tariffs. While revenue fell just short of Wall Street expectations, EPS came in at $3.70 adjusted versus the $2.62 expected.

Top three ETFs with heaviest weighting of GM:

See more: Are Semiconductors Feeling Chipper After Intel’s Earnings?

UPS Delivers on Earnings

Finally, UPS provided a bellwether for the state of the economy given that its performance may reflect consumer demand and business-to-business activity. A strong earnings report form UPS can indicate robust commerce, while weakness often signals a pullback in consumer spending or a potential slowdown in global trade.

UPS reported consolidated revenue of $21.2 billion and adjusted EPS of $1.07 (Wall Street estimates were $1.02). While the company is navigating ongoing transformation charges, management remains focused on its “better, not bigger” operations strategy.

Top three ETFs with heaviest weighting of UPS:

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