Earnings season has well and truly arrived, with this week seeing behemoth firm Amazon (AMZN) reporting earnings. Amazon earnings will arrive Thursday, arguably the biggest earnings drop of the week. AMZN and its fellow mega-cap giants have carried much of the S&P 500 this year, defying rising rates and other headwinds. One ETF that has benefitted from that, internet giants ETF OGIG, also offers investors an opportunity to play Amazon earnings.
Amazon did well in the second quarter in the price charts, climbing more than 26% during the quarter. Analysts are expecting the firm to have shown strong growth as well, despite a forecasted drop in revenue overall. That said, some more exciting segments like the firm’s advertising side offer reasons to get excited about Amazon earnings news.
With the firm reporting Thursday, which ETFs stand out to play Amazon earnings? The ALPS O’Shares Global Internet Giants ETF (OGIG) not only presents a way into AMZN but also exposure to the biggest internet firms. OGIG has returned 40.6% YTD, 25.4% over the last three months, and 6.7% over one month. Those returns outperformed both the ETF Database Category and Factset Segment averages in each of those time frames.
OGIG tracks the O’Shares Global Internet Giants Index which includes global internet and internet tech stocks weighted by both growth and quality factors. These quality factors include monthly cash burn rate while growth measures revenue growth rate. OGIG builds its universe from the 1,000 largest U.S. firms, the 500 largest European firms, and the 500 largest “Pacific Basin” companies.
The internet giants ETF charges 48 basis points (bps) for its exposures. The ETF’s AUM has grown by more than $10 million over the last month, as well. OGIG is sending a key buy signal according to its tech chart, too. For investors looking to play Amazon earnings, OGIG weights AMZN as its third-largest holding at 4.5%.
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