Salesforce (CRM) growth prospects are fueled by its expanding AI platform, robust cloud ecosystem, and strategic acquisitions. Also, the company’s overall revenue is likely to grow, with support from rising demand for its products. To invest in CRM, investors may consider these two ETFs: iShares Expanded Tech-Software Sector ETF (IGV) and First Trust Dow Jones Internet Index Fund (FDN).
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Let’s take a deeper look at these two ETFs.
iShares Expanded Tech-Software Sector ETF
The IGV ETF provides exposure to the software sector, benefiting from growth in cloud computing, AI, and enterprise solutions. It tracks the S&P North American Expanded Technology Software Index, offering exposure to leading tech firms.
CRM stock constitutes 6.54% of the ETF’s holdings. Apart from CRM, some of the top stocks in the IGV ETF are Microsoft (MSFT), Palantir (PLTR), and Oracle (ORCL). Overall, the ETF has $11.57 billion in assets under management (AUM). Also, it has an expense ratio of 0.41%. The IGV ETF has returned 30.56% over the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 117 stocks held, 90 have Buys, 26 have a Hold, and one has a Sell rating. At $117.33, the average IGV ETF price target implies a 10.98% upside potential.
First Trust Dow Jones Internet Index Fund
The FDN ETF tracks the Dow Jones Internet Composite Index, which includes leading U.S. internet-based companies. Importantly, Salesforce stock accounts for 5.04% of FDN’s total holdings.
Some of the top holdings in FDN ETF include Netflix (NFLX), Meta Platforms (META), and Amazon (AMZN). Overall, the ETF has $7.04 billion in AUM. Also, it has an expense ratio of 0.49%. The FDN ETF has gained 29.19% over the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 42 stocks held, 32 have Buys and 10 have a Hold rating. At $280.06, the average FDN ETF price target implies a 7.5% upside potential.
Concluding Thoughts
ETFs provide a diversified way to invest in Salesforce, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a low-cost, liquid, and transparent way to participate in the market. Investors seeking ETF recommendations might consider IGV and FDN, as these ETFs offer significant exposure to CRM stock.