3rdPartyFeeds

4 ETFs For Alphabet’s Ascent Into The Four Comma Club

This is the first time the internet search giant has joined the $1 trillion pantheon and that's good news not only for investors in the stock, but for those holding some of the nearly 170 exchange traded funds that own the stock. Some well-known ETFs are also big Alphabet holders. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Google parent Alphabet (NASDAQ: GOOG GOOGL) joined rivals Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) in the prestigious trillion market value club on Friday, aka “The Four Comma Club.”” data-reactid=”18″>Google parent Alphabet (NASDAQ: GOOG GOOGL) joined rivals Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) in the prestigious trillion market value club on Friday, aka “The Four Comma Club.”

This is the first time the internet search giant has joined the $1 trillion pantheon and that’s good news not only for investors in the stock, but for those holding some of the nearly 170 exchange traded funds that own the stock.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Alphabet’s shares are among a small group of stocks found in the top holdings of both mutual funds and hedge funds, two types of institutions whose investing styles tend to be markedly different, a Goldman Sachs analysis showed,” reports Reuters.” data-reactid=”20″>“Alphabet’s shares are among a small group of stocks found in the top holdings of both mutual funds and hedge funds, two types of institutions whose investing styles tend to be markedly different, a Goldman Sachs analysis showed,” reports Reuters.

Some well-known ETFs are also big Alphabet holders. Let’s have a look at a few here.

Fidelity MSCI Communication Services Index ETF (FCOM)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="By less than 20 basis points over the ETF with the second-largest Alphabet stake, the Fidelity MSCI Communication Services Index ETF (NYSEARCA: FCOM) leads the way with an 11.77% weight to the stock. That percentage jumps to around 23% when accounting for both the “A” and “C” share classes, something that FCOM and rival cap-weighted communication services ETFs do with Alphabet stock.” data-reactid=”23″>By less than 20 basis points over the ETF with the second-largest Alphabet stake, the Fidelity MSCI Communication Services Index ETF (NYSEARCA: FCOM) leads the way with an 11.77% weight to the stock. That percentage jumps to around 23% when accounting for both the “A” and “C” share classes, something that FCOM and rival cap-weighted communication services ETFs do with Alphabet stock.

 

Another perk of FCOM is that with its annual fee of 0.084% per year, or $8.40 on a $10,000 stake, it’s the cheapest ETF tracking this sector. 5G deployment is another reason to consider FCOM this year.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Many of the bellwether companies in the communication services sector gave power to 4G, and others showed us truly world-changing use cases for mobile broadband. I believe the same will be true of 5G,” said Fidelity in a recent note. “From a consumer standpoint, 5G will be dramatically faster but less of an improvement over the last generational shift, which introduced mobile broadband to the world. So, what is revolutionary about 5G? The answer lies with the proliferation of connected devices, appliances, systems, and more—also known as the internet of things—and where that collected data can take us.”” data-reactid=”27″>“Many of the bellwether companies in the communication services sector gave power to 4G, and others showed us truly world-changing use cases for mobile broadband. I believe the same will be true of 5G,” said Fidelity in a recent note. “From a consumer standpoint, 5G will be dramatically faster but less of an improvement over the last generational shift, which introduced mobile broadband to the world. So, what is revolutionary about 5G? The answer lies with the proliferation of connected devices, appliances, systems, and more—also known as the internet of things—and where that collected data can take us.”

Davis Select U.S. Equity ETF (DUSA)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Davis Select U.S. Equity ETF (NASDAQ: DUSA) is a focused, actively managed ETF that can be used as an alternative or a complement to broader, passive domestic equity strategies. Just three ETFs, including the aforementioned FCOM, have larger Alphabet weights than the 10.72% DUSA devotes to the stock.” data-reactid=”29″>The Davis Select U.S. Equity ETF (NASDAQ: DUSA) is a focused, actively managed ETF that can be used as an alternative or a complement to broader, passive domestic equity strategies. Just three ETFs, including the aforementioned FCOM, have larger Alphabet weights than the 10.72% DUSA devotes to the stock.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Davis Advisors’ management style largely targets durable businesses with above average margin returns, strong competitive advantages and durability. Companies also have to show strong management that have been in place for over five years as long-term investors can be sure that these are ethical, honest people that will help the business last,” according to ETF Trends.” data-reactid=”31″>“Davis Advisors’ management style largely targets durable businesses with above average margin returns, strong competitive advantages and durability. Companies also have to show strong management that have been in place for over five years as long-term investors can be sure that these are ethical, honest people that will help the business last,” according to ETF Trends.

DUSA’s overweight exposure to Alphabet is helping the fund slightly outpace the S&P 500 to start 2020.

Invesco NASDAQ Internet ETF (PNQI)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Alphabet's business lines are sprawling, but the company remains widely viewed as an internet firm. To that end, Invesco NASDAQ Internet ETF (NASDAQ: PNQI) is the internet ETF with largest allocation to the company at about 8.20%, making the stock the fund’s second-largest holding.” data-reactid=”34″>Alphabet’s business lines are sprawling, but the company remains widely viewed as an internet firm. To that end, Invesco NASDAQ Internet ETF (NASDAQ: PNQI) is the internet ETF with largest allocation to the company at about 8.20%, making the stock the fund’s second-largest holding.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The $557.3 million PNQI, which turns 12 years old in June, follows the NASDAQ Internet Index. That index “is designed to track the performance of the largest and most liquid US-listed companies engaged in internet-related businesses and that are listed on one of the major US stock exchanges,” according to Invesco.” data-reactid=”35″>The $557.3 million PNQI, which turns 12 years old in June, follows the NASDAQ Internet Index. That index “is designed to track the performance of the largest and most liquid US-listed companies engaged in internet-related businesses and that are listed on one of the major US stock exchanges,” according to Invesco.

Just six ETFs, including FCOM and DUSA, have larger Alphabet exposure than PNQI.

TigerShares China-U.S. Internet Titans ETF (TTTN)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Perhaps a hidden gem in the world of internet ETFs, the TigerShares China-U.S. Internet Titans ETF (NASDAQ: TTTN) combines U.S. and Chinese internet equities, giving it a unique methodology in this category.” data-reactid=”38″>Perhaps a hidden gem in the world of internet ETFs, the TigerShares China-U.S. Internet Titans ETF (NASDAQ: TTTN) combines U.S. and Chinese internet equities, giving it a unique methodology in this category.

The fund tracks the Nasdaq China US Internet Tiger Index, which is usually home to the 10 largest American and 10 biggest Chinese internet companies that are publicly traded.

Hence, an almost 8% weight to Alphabet is found in this ETF.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related Links” data-reactid=”41″>Related Links

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="3 Trade Deal ETFs Ready to Rally” data-reactid=”42″>3 Trade Deal ETFs Ready to Rally

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This Leveraged FANG ETN Is Luring Traders” data-reactid=”43″>This Leveraged FANG ETN Is Luring Traders

0

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”45″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”50″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read More

Add Comment

Click here to post a comment