Moreover, investors can also take a more targeted approach through internet-focused ETF options, including the PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI), First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) and ARK Web x.0 ETF (NYSEArca: ARKW).[related_stories]
The PowerShares Nasdaq Internet Portfolio tries to reflect the performance of the Nasdaq Internet Index, which includes many of the large internet names. Specifically, GOOG makes up 8.0% of PNQI’s underlying portfolio, along with FB 7.7%, NFLX 4.4% and YHOO 4.3%. Additionally, PNQI includes a hefty 8.3% tilt toward e-commerce provider Amazon (NasdaqGS: AMZN) and 8.3% in Chinese tech firm Baidu (NasdaqGS: BIDU), which both will announce earnings next week as well. This internet-related ETF breaks down its holdings into about 58.9% traditional information technology names, along with 36.8% in consumer discretionary stocks with a large online presence.
Similarly, the First Trust Dow Jones Internet Index Fund targets companies that have generated at least 50% of their annual sales from the internet, including a 69.4% tilt toward information technology names and 22.9% in consumer discretionary. Top holdings include AMZN 10.6%, FB 9.9%, NFLX 5.3%, Alphabet Class A 5.2%, Alphabet Class C 5.1% and Yahoo 4.4%.
Additionally, the ARK Web x.0 ETF, an actively managed ETF that focuses on disruptive companies that help transform the market, is also internet heavy. ARKW tracks a number of companies that benefit from increase use of shared technology, infrastructure and services in cloud computing, big data, social media, internet, devices and gateways, e-commerce, media ecosystems, health care, sharing economy, point of sale, telecom and cryptocurrencies. The ETF also includes NFLX 6.1%, AMZN 5.5%, FB 4.4%, AAPL 4.1% and GOOG 4.0%.