Amazon Helps Lift Retail, Internet ETFs

ETF Trends

The e-commerce giant Amazon (AMZN) has been one of this year’s top performers as the retailer expands beyond household goods. For those interested in Amazon as a part of a diversified portfolio, investors may take a look at either retail or Internet sector exchange traded funds to gain exposure.

Amazon shares are up nearly 50% year to date and trading near a 52-week high.

“We believe the most disruptive force in retail in recent years has been Amazon.com,” according to Morningstar analyst R.J. Hottovy. “Amazon’s low-cost operations, network effect, and laser focus on customer service provide the company with sustainable competitive advantages that traditional retailers cannot match.”

Amazon is now involved in cloud computing services to stream on-demand entertainment, writes Eric McHinnie for Wall St. Cheat Sheet.

Additionally, the company recently introduced the new line of e-readers and Kindle Fires, which will compete with other computer tablets.

On Monday, Amazon hit an all-time intraday highs right after the open. AMZN is currently trading at around $258 per shares and is up 49.7% year-to-date.

Investors who want to include AMZN into a diversified investment portfolio may consider either retail or technology sector ETFs:

  • Market Vectors Retail ETF (RTH) : AMZN is 7.7%.
  • Consumer Discretionary Select Sector SPDR (XLY) : AMZN is 7.3%.
  • PowerShares Nasdaq Internet Portfolio (PNQI): AMZN is 8.9%.
  • First Trust Dow Jones Internet (FDN): AMZN is 8.2%
  • iShares S&P North America Technology (IGM) : AMZN is 3.4%.
  • SPDR Morgan Stanley Technology (MTK) : AMZN is 3.4%.

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For more information on the retail sector, visit our retail category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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