(By ETF Daily News) Though the second quarter has gotten off to a rocky, investors are turning their eyes to earnings season to continue the bull run that has defined 2012. The past few days have seen markets all over the board, as Alcoa kicked off earnings season with a bang, leading many investors to muster up optimism for the coming few weeks. Q1 of this year was the strongest opening quarter in nearly 14 years, but many feel that the good times are just about over, and that markets are due for a steep correction sooner or later. But with one of the strongest three-month spans in recent history, earnings season figures to continue the high momentum, as a number of companies likely enjoyed a strong quarter [see Free Report: Seven Simple & Cheap ETF Model Portfolios].
For those who feel that recent stock market gains will translate into positive earnings, the next few weeks will be crucial, as markets will have the potential to soar. While a correction may be in store down the line, earnings season has the potential to subdue these fears for the time being as all eyes will be fixated on some of the biggest companies in the world. Investors looking to take advantage of a possible bull-run in the next few weeks have plenty of options to choose from. Below, we outline five funds for those looking to make a bullish play during earnings season [see also How To Pick The Right ETF Every Time].
Russell 2000 Index Fund (NYSEARCA:IWM)
This small cap ETF is one of the most popular in the world, as it is home to over $13 billion in assets and changes hands roughly 50 million times each day. Small cap companies tend to exhibit high betas and come with a steeper risk than safer, larger funds. With that, IWM has the potential to outdo its competition in a bull run, as small cap firms tend to gain more than their peers during these profitable times. Note that this strategy works the same way in reverse, as IWM's losses will be steep if things turn south in a hurry.