A Hidden Gem Among Internet ETFs

Internet stocks are usually viewed as a growth and a momentum names, a positive trait at a time when value stocks are lagging.

The growth factor may be gaining momentum as investors turned to upbeat economic and earnings data, causing many to adopt a more risk-on attitude. Since growth stocks show high multiples, investors may expect that the companies will sustain a high growth rate. In contrast, traders may feel that firms with low multiples would continue to experience tepid growth.

“Neither Amazon nor Facebook are among XWEB’s top 10 holdings. Investors have yet to wake up to XWEB’s story as evidenced by $4 million in assets under management, but this internet ETF is up more than 39% over the past year,” notes InvestorPlace.

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