Shares of Netflix (NFLX) are surging, leaving investors looking for ETFs providing the greatest exposure to the streaming giant.
Netflix stock shares jumped 16% on Thursday following the company’s third-quarter earnings report. Several brokers upgraded the stock to a buy following the upbeat report.
The updates being celebrated by Wall Street include the firm reporting a 70% jump in its new ad-supported subscription tier. Additionally, Netflix beat projections on new subscribers, adding 8.76 million during the quarter compared to the 5.49 million that analysts expected.
The increase in subscribers marks the largest jump in over three years, since the second quarter of 2020.
For investors looking add or overweight exposure to Netflix via an ETF, the Invesco Next Gen Media and Gaming ETF (GGME) and the Invesco S&P 500 Equal Weight Communication Services ETF (RSPC) offer two unique approaches.
ETF Offering Netflix Exposure
GGME provides the greatest exposure by weight to Netflix out of all non-leveraged ETFs available to investors, according to ETF Database. The fund weights the security 6.55% as of October 18.
GGME’s offers exposure to companies with significant exposure to technologies or products that contribute to future media through direct revenue. With 100 holdings and 62% of the fund by weight in the top 10 names, GGME takes a fairly concentrated approach.
See more: “How Invesco’s AI and Software ETF Evolved to Capture Current Opportunities”
Meanwhile, RSPC offers broad exposure to the communication services sector with a unique spin: It gives every security an equal weight at each quarterly rebalance. RSPC overweights Netflix compared to its cap-weighted communication services sector ETF peers. The equal fund weights the security 3.67% as of October 18.
RSPC holds just 25 securities but stays keeps exposure balanced by limiting the weight of each stock. 48% of the fund by weight is in the top 10 names.
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