As one of the vaunted FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks, Netflix is subject to competition from one of its peers, but the online streaming giant is looking to up the ante in order to fend off the opposition.
Netflix investors are decidedly nervous as companies like Apple, Disney and Amazon are looking to bolster their streaming businesses. Shares of Netflix have been climbing 10% higher the past two weeks, but the competition could threaten the rally.
“Netflix investors are understandably nervous about the new competition, especially since the company also has to contend with Amazon and its Prime Video service, Disney-backed Hulu and more new streaming services launching next year, most notably HBO Max and Peacock from Comcast-owned NBC Universal,” a CNN Business report noted.
“We plan on taking spend up quite a bit,” Netflix CEO Reed Hastings told attendees at the New York Times’ DealBook conference this past Wednesday.
Here are some ETFs to watch with heavy Netflix allocations:
- AdvisorShares New Tech and Media ETF (NYSEArca: FNG): seeks long-term capital appreciation. The fund is an actively managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in securities of technology and media companies. It will invest primarily in U.S. exchange-listed equity securities, including common and preferred stock and ADRs, of technology and technology-related companies, including innovative and fast-growing technologies. The fund will concentrate its investments in the software and services industry within the information technology sector.
- Invesco NASDAQ Internet ETF (NASDAQ: PNQI): The investment seeks to track the investment results (before fees and expenses) of the NASDAQ Internet IndexSM. The fund generally will invest at least 90% of its total assets in securities that comprise the underlying index. The underlying index is designed to track the performance of the largest and most liquid U.S.-listed companies engaged in Internet-related businesses that are listed on one of the three major U.S. stock exchanges.
- First Trust Dow Jones Internet Index (NYSEArca: FDN): seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the Dow Jones Internet Composite Index (SM) (the “index”). The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks that comprise the index. The index is designed to measure the performance of the largest and most actively traded securities issued by U.S. companies in the Internet industry. The index is a composite of its two sub-indices, the Dow Jones Internet Commerce Index and the Dow Jones Internet Services Index.
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