Don Dion's ETF Play On Amazon (AMZN)
Don Dion wrote an article on thestreet.com about the way investors could play Amazon (NASDAQ: AMZN) through ETFs.
He sees the latest AMZN decision to give authors and publishers 70% of the sales from their Kindle books as brilliant and believes that it will definitely hurt competitors. Don Dion thinks that this move is a preemptive move against Apple (NASDAQ: AAPL) and praises management for its business instincts.
Although he sees Amazon (AMZN) as a very profitable company, Mr.Dion is concerned with its valuations.
If you want to play Amazon (AMZN) through ETFs you can take a look at Internet HOLDRs (ETF) (NYSE: HHH), PowerShares Nasdaq Internet Portfol (ETF) (NASDAQ: PNQI) and First Trust DJ Internet Index Fund (ETF)
(NYSE: FDN).
HHH has 40.3% of its assets in Amazon (AMZN), PNQI has 7.3% and FDN has 6.3%. Don Dion's choice would be FDN because of its high liquidity. FDN and PNQI have the same portfolios, but FDN is more liquid, while HHH is too concentrated in his opinion.
