To its credit, FDN has managed a slight October gain, no small feat considering investors’ immediate reaction to the recent earnings reports from Amazon, Netflix (NasdaqGS: NFLX) and Twitter (NYSE: TWTR). Netflix and Twitter combine for 6.7% of FDN’s weight. [Netflix Could Weigh on These ETFs]
Investors’ devotion to FDN is understandable. The ETF is home to a slew of high-priced stocks, making it an ideal avenue for capital-constrained investors to access a bunch of sexy U.S. Internet stocks. That devotion has come at a price though because Amazon is just one of 17 S&P 500 members that have fallen 20% or more this year. Yes, that means Amazon is in a bear market. [Amazon’s Bear Market Problematic for These ETFs]
On the other hand, the average year-to-date for KWEB’s top-10 holdings excluding Alibaba is 30.2%.
Tom Lydon’s clients own shares of Facebook. Todd Shriber owns shares of Alibaba.