Top ETFs for Earnings Season: Hougan

Thursday, 17 Jan 2013 | 5:41 PM ET
Five Top ETFs for 2013: Matt Hougan
The most widely known exchange-traded funds aren't necessarily the ones investors will want to chase next year, says Matt Hougan of Index Universe.

ETF investors are going risk-on into earnings season, IndexUniverse President Matt Hougan said Thursday on CNBC.

"We're just seeing huge inflows into XLF," he said, referring to the financial sector exchange-traded fund.

"I think investors are playing the strong results from folks like Goldman Sachs," he added. "That's offset a little bit by the Citis, but people see a generally positive environment for those stocks. I think momentum continues there."

The movement of funds, Hougan added, showed that investors were looking for higher returns.

"It's as clear as day," he said. "For ETF investors, at least, it's all risk-on and out of risk-off.

On "Fast Money," Hougan said that the ETFs with the top inflows were:

Financials (XLF) $1 billion

Materials (XLB) $447 million

Industrials (XLI) $338 million

Technology (XLK) $337 million

"We've seen a billion dollars flow out of the safety sectors like telecoms, utilities, and a couple billion dollars flow into those risk-on sectors like materials, industrials and tech. That's where investors are placing their bets for this earning season – at least ETF investors – and it's paying off."

Trader disclosure: On Jan. 17, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is funds long ERJ; Tim Seymour is funds long RIO; Jon Najarian is long GS CALLS SPREADS; Jon Najarian is long INTC CALLS; Jon Najarian is long EBAY CALLS; Jon Najarian is long NFLX PUTS; Jon Najarian is long AMRN CALLS; Brian Kelly is long QQQ; Brian Kelly is long XLK; Brian Kelly is long SPY; Brian Kelly is long TLT; Brian Kelly is long XLF; Brian Kelly is long JJG; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU.

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