Top Three ETFs to Watch This Week: TQQQ, MAGS, SCHD

Exchange-traded funds (ETFs) are having a strong year, with inflows surpassing $1 trillion and total assets under management steadily approaching the $16 trillion mark.

This article highlights some of the top ETFs to watch this week, including the ProShares UltraPro QQQ (NASDAQ: QQQ ), Roundhill Magnificent Seven (CBOE: MAGS) and Schwab US Dividend Equity (NYSE: SCHD ).

ProShares UltraPro QQQ in Focus as Big Tech Earnings Near The ProShares UltraPro QQQ ETF has been among the top-performing ETFs this year as technology stocks have continued to rally.

Its total return so far this year stands at 45%, significantly outperforming the Invesco QQQ Trust (NASDAQ: QQQ ), which has delivered a 21% return over the same period.

The ETF has experienced over $949 million in inflows in the last month, a sign that investors expect tech stocks to do well.

This week will be crucial for the fund as most of its constituent companies publish their financial results.

The most important ones are its biggest companies like Microsoft (NASDAQ: MSFT ), Meta Platforms (NASDAQ: META ), Amazon (NASDAQ: AMZN ) and Apple (NASDAQ: AAPL ).

Big-tech earnings can have a big impact on the TQQQ ETF.

Last week, it tumbled to its lowest level since May 4 as top technology companies like Alphabet (NASDAQ: GOOG ), Tesla (NASDAQ: TSLA ) and Intel (NASDAQ: INTC ) released their earnings.

The ETF is also sensitive to the actions of the Federal Reserve.

In most cases, technology companies tend to drop whenever the Fed makes a hawkish interest rate decision.

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This includes companies like Nvidia, Apple, Microsoft, Alphabet, Meta Platforms, Tesla, and Amazon.

This ETF has lost favor among investors this year as investors have focused on the booming memory stocks.

Recently, however, it has started gaining assets as investors bet on these companies.

It has added over $400 million in assets in the last month.

Two of its largest holdings, Alphabet and Tesla, have already reported earnings, and both stocks fell sharply following their results.

Four other major constituents—Meta Platforms, Microsoft, Amazon, and Apple—are scheduled to report earnings later this week.

These earnings will be important because the companies will outline their capital spending plans.

Signs that hyperscalers are planning to boost their capital expenditures will be bearish for the stocks as investors are mostly focusing on the return on investment.

This explains why Google stock dropped after releasing strong earnings.

SCHD ETF In Focus After Crossing $100 Billion AUM The Schwab US Dividend Equity ETF will also be in the spotlight as its inflows jump and as its assets under management cross the $100 billion mark.

It has gained over $14 billion in assets this year and now holds $102 billion in assets.

This makes it the second-biggest dividend ETF after the Vanguard Dividend Appreciation ETF (NYSE: VIG ), which has $110 billion in assets.

As such, if the trend continues, SCHD may overtake VIG in the near term.

Many of the biggest SCHD companies, like Procter & Gamble, Coca-Cola, and Chevron, will release their earnings this week.

Other large ones like Merck and Amgen will release next week.

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