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Top ETFs With Twitter Stock Exposure

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Top ETFs With Twitter Stock Exposure

The overwhelming transparency of exchange-traded funds (ETFs) allows for enhanced research capabilities of the underlying holdings. This can be particularly useful when trying to pinpoint a diversified fund with outsized exposure to a particular stock.

For instance, in looking for a list of the top ETFs with the largest allocation to Twitter Inc (NYSE: TWTR), simply head over to the stock exposure tool at ETFDB.com.

Plugging in the Twitter ticker symbol (TWTR) brings up a list of the following funds, in addition to the weighting of the stock within the ETF:

  • Renaissance IPO ETF (NYSE: IPO) – 7.37 percent
  • Web X.0 ETF (ARK ETF Trust) (NYSE: ARKW) – 4.71 percent
  • Ark Innovation ETF (ARK ETF Trust) (NYSE: ARKK) – 3.35 percent
  • NASDAQ Internet Portfolio (PowerShares Exchange-Traded Fund Trust) (NASDAQ: PNQI) – 2.92 percent
  • Focus Growth ETF (Calamos ETF Trust) (NASDAQ: CFGE) – 2.87 percent

Related Link: Twitter Acquires Machine Learning Company

Outside Exposure Drop Doesn't Mean ETF Drop

One would think that the recent collapse in the price of Twitter from a recent high near $53 to a 52-week low of $34 would have disastrous consequences for the funds on this list. Nevertheless, many of these ETFs have thrived, despite the drag that this individual holding has provided.

IPO has gained over 9 percent this year and is continuing to demonstrate strong relative momentum in recent weeks. This ETF provides exposure to 56 companies with less than two years of trading history.

ipo.png

While Twitter has a large weighting within the basket of stocks that compose this fund, its anchor effect has been overcome by strength in other top holdings such as Ally Financial Inc (NYSE: ALLY) and JD.com Inc(ADR) (NASDAQ: JD).

This clearly demonstrates the positive effects of diversification that can mitigate specific business risks associated with individual stock investing.

Related Link: Should Apple Or Google Buy Twitter?

Twitter is also the second largest overall holding in ARKW. This unique actively managed ETF invests in an array of 45 Internet commerce, social media and technology infrastructure companies.

Holdings are selected and weighted according to the portfolio managers’ fundamental research with the goal of long-term growth. ARKW has gained over 14 percent this year and recently hit new all-time highs as well.

While the outlook for Twitter may be cloudy at the moment, there remains a diverse group of ETFs with allocations to this stock that have avoided the recent volatility.

Image Credit: Public Domain

 

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