Invest in Alibaba Stock with These 3 ETFs - ETF News And Commentary

The most anticipated initial public offering (IPO) of the year, that of Chinese e-Commerce giant Alibaba Group Holding Ltd. (

), saw a solid debut on the New York Stock Exchange on Sep 19. In fact, BABA has turned out to be the biggest listing worldwide for any IPO.

The company's stock price rose by a stellar 38% on the day of the listing. The huge success of the IPO at a time when concerns about a slowdown in the Chinese economy are widespread, suggests investors' confidence in the prospects of the company and their belief that Alibaba is too big to be a failure (see 

).

Alibaba occupies 80% of the Internet e-commerce market in China and is one of world's biggest Internet companies, allowing merchants to sell goods directly to consumers. The $25 billion IPO is believed to have made Jack Ma, Alibaba's founder and chairman, China's richest man.

Last year, customers shopped goods

from the company's retail website. This is more than twice the amount of goods sold on Amazon (

) worldwide. With a thriving Chinese middle class, these numbers are expected to grow (read:

).

In fact, the listing of Alibaba symbolizes the tremendous potential of Chinese tech companies. Investors seeking to take advantage of this booming segment as well as those keen on riding the potential upside of the e-commerce giant can play through any of the below mentioned ETFs, which have recently included Alibaba in their baskets.

Below we have highlighted some of the details about these funds for investors seeking to own Alibaba in ETF form.

 (

) 

KWEB is both the first China, and technology, ETF to hold Alibaba. Launched last year, KWEB has gained much popularity and currently manages an AUM of $112.4 million.  The fund trades in a moderate volume of roughly 95,000 shares a day.

Tencent occupies the top spot with 10.3% allocation, followed by Alibaba (9.7%) and Baidu (8%). Sector-wise, technology dominates the fund with three-fourth allocation, followed by Discretionary.

KWEB fund charges 68 basis points as fees and has added 4% so far this year (see all the

).

Launched last year, the fund also gives exposure to the hot U.S. IPO market. New companies seek inclusion on a ‘fast entry basis' on the fifth day of trading.

Holding a basket of 74 stocks, the fund tracks the Renaissance IPO Index. Alibaba takes the second spot with 9.6% allocation, behind Twitter Inc- which has 10.2% exposure in the fund. Large caps dominate the fund with more than half of the total fund exposure, followed by mid caps.

From a sector look, technology stocks make up for more than one-fourth share while healthcare and oil & gas round off the top three with double-digit exposure.

IPO has returned 5.3% in the year-to-date frame.

 (

)

The product tracks the IPOX-100 U.S. Index, giving exposure to the booming U.S. IPO market. The ETF focuses on the 100 largest and most liquid U.S. IPOs. New companies can find a place as one of the fund's holdings generally after the next quarterly rebalancing date, though some companies like BABA do make it in much quicker as exceptions.

The product holds a basket of 100 stocks with Facebook (10.37%), AbbVie (9.3%) and General Motors (5.4%) taking the top three spots. Alibaba is among the top 10 holdings with a little less than 3% allocation.

The product has a nice mix of sectors, with the top four being Information Technology, Consumer Discretionary, Healthcare and Energy, each with a double-digit allocation (read: 

).

The product manages an asset base of $515.4 million and has gained 6.7% this year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 

. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.