Following its second-quarter earnings report, shares of Netflix were down as much as 11 percent after the online streaming company only added 2.7 million subscribers, which was almost half of the 5 million that analysts were expecting. However, this could offer a buy-the-dip opportunity for certain exchange-traded funds (ETFs) with the largest Netflix holdings.

Speaking on its fall in subscribership, Netflix cited the entrance of new competitors to the streaming space with Apple and Disney joining the fray. Lighter guidance for the second quarter may have put some investors on pause, but some analysts quelled any fears of future revenue growth decreasing.

However, investors could make due with buying the dip in shares of Netflix itself or with ETFs that have the largest holdings in the online streaming giant.

Here are three exchange-traded funds (ETFs) to consider with the biggest Netflix holdings:

  1. 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.
  2. 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.
  3. 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.

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