Although PBS houses several Internet stocks, its status as a media play places it in the confines of the struggling consumer discretionary sector. If there is a silver lining here it is that discretionary sector valuations have retreated to attractive levels and the sector is entering its favorable seasonal period. [Best Sector ETFs for October]
Another almost Netflix ETF to keep an eye on is the SPDR Morgan Stanley Technology ETF (NYSEArca: MTK). MTK allocates 3.3% of its weight to Netflix and although the ETF and the stock do not yet share an intimate correlation, that correlation is rising. Over the past three years MTK’s correlation to Netflix is just 0.25, but over the past 12 months, that number has risen to just over 0.33.
First Trust Dow Jones Internet Index Fund
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of QQQ.