Another Internet ETF Could be on the Way

State Street’s State Street Global Advisors (SSgA) unit, the third-largest U.S. issuer of exchange trade funds, could become the latest ETF issuer to try its hand at an Internet ETF.

In a recent filing with the Securities and Exchange Commission, SSgA revealed plans for the SPDR S&P Internet ETF. The filing did not include a ticker or expense ratio, indicating it could be awhile before the new ETF hits the market.

Assuming it comes to market, the new ETF will track the S&P Internet Select Industry Index and employ a sampling strategy, “which means that the Fund is not required to purchase all of the securities represented in the Index. Instead, the Fund may purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index,” according to the filing.


Familiar names in that index include Groupon (NASDAQ: GRPN), Facebook (NASDAQ: FB) and Priceline (NASDAQ: PCLN), according to S&P Dow Jones Indices. The index has been around for nearly 11 years.

The First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) and the PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI) are the dominant names among existing Internet ETFs.

Tom Lydon’s clients own shares of Facebook.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.