Or, in the case of Google (NasdaqGM: GOOG), a quadruple-digit diva. The Internet search giant made it to $1,000, or roughly double the share price of rival Apple (NasdaqGM: AAPL), on the back of a strong third-quarter earnings report.
Trading at or around $1,000 is a nice feather in the cap of any company, but it is not always good news for cash-constrained investors. And with the number of traditional, forward stock splits on the decline, investors cannot bank on Google or Apple executives, or those from other high-priced companies, to split their shares merely to accommodate more retail investors.
Enter ETFs. The already known drawback is that an ETF does not give investors all of the move, on a percentage basis, in any stock. However, there are a few ETFs that are useful for getting exposure to high price tag stocks. Consider the following.
Technology Select Sector SPDR (NYSEArca: XLK): Apple, Google and International Business Machines (NYSE: IBM) combine for nearly 29% of XLK’s weight. The downside here is that IBM is the Dow’s biggest dog this year. Still, Apple and Google combine for 22.6% of XLK’s weight. [Tech ETFs Surging on Apple News]
First Trust Dow Jones Internet Index Fund (NYSEArca: FDN): FDN does not just offer solid exposure to triple-digit stocks, with Google and Priceline (NasdaqGM: PCLN) both at or near $1,000 a share, a combined 15.2% of FDN’s weight is allocated to quadruple-digit stocks. Other triple-digit names in FDN: Amazon (NasdaqGM: AMZN), Netflix (NasdqGM: NFLX) and LinkedIn (NYSE: LNKD), a combined 13% of the ETF’s weight. [Is the Dot-Com Bubble Back?]
PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI): FDN’s biggest competitive threat is a triple-digit dynamo in its own right. Five of PNQI’s top-10 holdings are in triple-digit territory or higher. In order, Amazon, Priceline, Google, Netflix and Baidu (NasdaqGM: BIDU) combine for nearly a third of PNQI’s weight.