Over the last few weeks, we heard first-quarter earnings from some major US companies. And while most of the earnings reports only gave a small glimpse of how the economic shutdown has affected their businesses, some companies performed much better than others. The companies one would expect to struggle when non-essential companies were forced to close and Americans were told to 'stay at home' obviously struggled. However, the technology companies that are allowing us to purchase products and have them delivered to our front doors, the companies that are allowing us to communicate with friends and family remotely and the infrastructure firms who offer the back-bone for millions of Americans to successfully work from home, well those companies are doing great, maybe better than ever.
So, let's take a look at some ETFs that hold those companies and one that may be a little outside the box but could be focused on one industry that could be a huge winner from 'stay at home' orders.
The first is the First Trust Dow Jones Internet Index Fund (FDN). FDN invests in a market-cap-weighted index of the largest and most liquid US internet companies. The FDN has 43 holdings, all of which are US-based companies. Its top 10 holdings make up 48% of the fund and the weighted average market cap is $214 billion. The fund has an expense ratio of 0.52%. Amazon, Facebook and Netflix are its three largest holdings and if Alphabet's stock wasn't split into two classes, that would likely be in the top four of FDN. The fund is up 6.29% year-to-date and higher by more than 21% over the past month, so as of May 1st, you have not lost any money owning this ETF in 2020, better yet, your up unlike most investments right now. Continue reading "4 ETFs You Should Start To Buy"