Netflix (NFLX) is one of the closely watched growth stocks, but buying Its shares amid volatility, competitive pressure, and deal-related uncertainty isn’t an easy decision. Thus, to gain exposure to NFLX stock, investors may consider investing in these two ETFs: First Trust Dow Jones Internet Index Fund (FDN) and Invesco Next Gen Media and Gaming ETF (GGME).
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Let’s take a deeper look at these two ETFs.
First Trust Dow Jones Internet Index Fund
The FDN ETF tracks the Dow Jones Internet Composite Index, which includes large‑ and mid‑cap companies that generate at least half of their revenue from internet‑related activities. These consist of e‑commerce, cloud computing, online advertising, streaming, and software‑as‑a‑service. Importantly, NFLX stock accounts for 7.99% of FDN’s total holdings.
Some of the top holdings in the FDN ETF include Amazon (AMZN), Meta Platforms (META), and Alphabet (GOOGL). Overall, the ETF has $6.97 billion in assets under management (AUM). Also, it has an expense ratio of 0.49%. The FDN ETF has gained 5.12% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 41 stocks held, 33 have Buy ratings and eight have Hold ratings. At $340.05, the average FDN ETF price target implies a 26.91% upside potential.
Invesco Next Gen Media and Gaming ETF
The GGME ETF tracks the Stoxx Global Next Generation Media Index, which includes global companies deriving the majority of revenue from gaming, digital media, or related technologies. Netflix stock constitutes 6.74% of the ETF’s holdings.
Some of the top holdings in the GGME ETF include Apple (AAPL), Nvidia (NVDA), and Qualcomm (QCOM). Overall, the ETF has $150.26 million in AUM and an expense ratio of 0.62%. Over the past six months, the GGME ETF has gained 4.1%.
On TipRanks, GGME has a Moderate Buy consensus rating based on 54 Buys, 22 Holds, and three Sells assigned in the last three months. At $76.17, the average GGME ETF price target implies 27.85% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to NFLX, 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 FDN and GGME, as these ETFs offer exposure to NFLX stock.