With e-commerce giant Amazon.com (NASDAQ:
) reporting earnings Thursday after the close of U.S. markets,
investors that do not have the capital to dance with a stock that
trades above $270 per share (as of late Thursday) may be looking
for ETF alternatives.
similar situation is seen
with Apple (NASDAQ:
) and other triple-digit stocks, but unlike rival Apple, Amazon
does not dominate nearly as many
The credible options for investors looking for Amazon exposure
via ETFs are small in number and include some thinly traded
options. Consider the following funds.
First Trust Dow Jones Internet Index Fund (NYSE:
) Of the trio to be highlighted here, the First Trust Dow Jones
Internet Index Fund is the most heavily traded with average daily
volume of just under 166,000 shares. FDN is also the largest of
this trio with over $901 million in assets under management.
Amazon is the ETF's second-largest holding behind Google
) with a weight of 7.65 percent as of April 24. FDN could be even
more useful than investors expect assuming Amazon surges and eBay
) goes along for the ride. That stock is 6.5 percent of FDN's
PowerShares NASDAQ Internet Portfolio (NASDAQ:
) Today is a good day to start paying attention to the unheralded
PowerShares NASDAQ Internet Portfolio and not just because of
Amazon, although the stock is the ETF's second-largest holding
with a weight of 7.94 percent. Baidu (NASDAQ:
), China's Google, reports overnight as well and that stock is
another top-10 holding in this ETF. Priceline (NASDAQ:
), Google, eBay and Facebook (NASDAQ:
) combine for nearly 31 percent of PNQI's weight.
Market Vectors Retail ETF (NYSE:
) By assets under management, the $23.7 million Market Vectors
Retail ETF is the smallest fund mentioned here, but RTH makes up
for it with an 8.5 percent weight to Amazon. That means Amazon is
the ETF's third-largest holding behind Dow components Wal-Mart
) and Home Depot (NYSE:
). Average daily turnover stands at over 105,700 shares, but that
has declining in recent weeks.
Those looking for a more heavily traded ETF with more of a
retail that has Amazon exposure can consider the Consumer
Discretionary Select Sector SPDR (NYSE:
). XLY has a 5.9 allocation to Amazon and is up seven percent in
the past 90 days. On the other hand, RTH is up nearly nine
For more on ETFs, click
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