Alphabet (GOOGL) surged 8% in the extended trading hours after a federal judge gave a long-awaited antitrust ruling that avoided the worst-case scenario for Google. The decision allows Google to keep its Chrome browser and continue paying partners such as Apple (AAPL) to make its search engine the default. The ruling helped ease investor concerns about the tech giant’s future. Thus, this might be the right time to consider GOOGL stock, especially through exchange-traded funds (ETFs) that offer diversified exposure without the risk of holding the stock directly.
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Investors seeking exposure to Alphabet stock may consider the Vanguard Communication Services ETF (VOX) and the Invesco QQQ Trust (QQQ). Let’s take a deeper look at these two ETFs.
Vanguard Communication Services ETF
The VOX ETF gives exposure to major U.S. companies in the communication services space. It tracks the performance of the MSCI US IMI Communication Services 25/50 Index, which includes large, mid, and small-cap firms involved in media, telecom, entertainment, and internet services.
Importantly, GOOGL accounts for 13.32% of the VOX ETF’s total holdings. Also, it offers exposure to companies such as Meta Platforms (META), Walt Disney (DIS), and AT&T (T). Overall, the ETF has $5.54 billion in assets under management (AUM) and an expense ratio of 0.09%. Over the past three months, the VOX ETF has generated a return of 12.9%.
On TipRanks, VOX has a Strong Buy consensus rating based on 80 Buys, 40 Holds, and one Sell assigned in the last three months. At $202.08, the average VOX ETF price target implies 12.48% upside potential.
Invesco QQQ Trust
The QQQ ETF is one of the most popular and widely traded ETFs in the world, offering investors exposure to 100 of the largest non-financial companies listed on the Nasdaq. It tracks the Nasdaq 100 Index (NDX), which includes major players in tech, consumer services, healthcare, and more. Importantly, Alphabet accounts for 2.84% of the QQQ ETF’s total holdings.
Apart from GOOGL stock, some of the top stocks in the QQQ ETF are Nvidia (NVDA), Microsoft (MSFT), and Apple. The ETF has $370.01 billion in AUM and an expense ratio of 0.2%. The QQQ ETF has gained 8.2% in the past three months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 102 stocks held, 90 have Buys and 12 have Holds. At $645.76, the average QQQ ETF price target implies a 14.17% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to Alphabet, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider VOX and QQQ, as these ETFs offer exposure to GOOGL stock.