Netflix’s year-to-date performance is the stuff dreams are made of–after starting off the year at just over $200 a share, it reached a high of over $400 in June to more than double its share price. If Netflix can sustain this upward trajectory in the second half of 2018, it’s worth it to watch three ETFs that are heavy with Netflix.
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1. AdvisorShares New Tech and Media ETF (NYSEArca: FNG)
FNG is actively-managed and invests 80 percent of its assets into tech and media companies. It has a Netflix exposure of 10.93 percent.
- YTD performance: -0.65 %
- 1-year performance: N/A
- 3-year performance: N/A
2. Invesco NASDAQ Internet ETF (NASDAQ: PNQI)
PNQI’s objective is to track the investment results of the NASDAQ Internet IndexSM. Its Netflix exposure is 9.32 percent.
- YTD performance: 16.77%
- 1-year performance: 28.84%
- 3-year performance: 22.76%
3. First Trust Dow Jones Internet Index (NYSEArca: FDN)
FDN’s goal is to seek results that correlate to the price and yield of the Dow Jones Internet Composite Index. Its exposure to Netflix is 6.43 percent.
- YTD performance: 22.32%
- 1-year performance: 41.95%
- 3-year performance: 26.09%
Brian White, Global Head of Internet Software Equity Research at Moness, Crespi, Hardt & Co., seems to think that the upward trajectory of Netflix is sustainable.
“It’s been a rocket and I think this can continue,” said White. “I think the market’s starting to look at Netflix through a different lens and they’re really seeing a couple of things. Number one, the globalization initiative is really starting to pay off so a couple of years ago, they made this push and you’re starting to see this in the numbers with 70 percent international growth last quarter and they can push through price hikes.”
As such, the chart for Netflix’s YTD performance would make a geometry teacher proud with it’s almost-perfect 45-degree angle.
Of course, all good things must come to an end, but until then, it’s worth it to watch ETFs heavy with the outperforming media provider.
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