3 ETFs With Big-Time Shopify Exposure
Canadian e-commerce juggernaut Shopify (NYSE:SHOP) is on a stellar run, one that's eliciting calls of “story stock” status. With the shares higher by almost 52% over the past month, those calls are proving accurate.
With a market capitalization of $90.15 billion as of the May 14 close and using Amazon.com (NASDAQ:AMZN) as the comparison, Shopify could have plenty of growth ahead of it. E-commerce and online shopping sure do.
Speaking of Amazon, that stock's price tag is unapproachable for many ordinary investors and that's getting to be the case with Shopify following the May 14 close just over $754.
With that in mind, investors may want to consider some of the following exchange traded funds for proxy-like exposure to Shopify.
JPMorgan BetaBuilders Canada ETF (BBCA)
With its recent, Shopify is now the largest Canadian company by market value and is now the second-largest component in the JPMorgan BetaBuilders Canada ETF (CBOE: BBCA). BBCA itself is the largest Canada ETF trading in the U.S., besting a rival product from iShares by $1.3 billion.
However, Shopify can't carry the day for the two Canada ETFs as highlighted by year-to-date losses of about 21% for both funds. That underscores the intimate correlations Canadian stocks often share with oil prices.
First Trust Dow Jones International Internet ETF (FDNI)
The First Trust Dow Jones International Internet ETF (NASDAQ:FDNI) is the international counterpart to the popular First Trust Dow Jones Internet ETF (NYSE:FDN). While FDN is heavy on the likes of Amazon and Facebook (NASDAQ:FB), FDNI lays claim to being the ETF with the largest Shopify weight at about 10%.
FDNI's Shopify weight is about 230 basis points higher than the ETF with the second-largest allocation to the stock. Overall, FDNI is a play on international equities with popular internet shopping footprints and is heavy on emerging markets stocks. The First Trust fund is higher by 14.1% this year.
Global X Cloud Computing ETF Global X Cloud Computing ETF (CLOU)
As noted here earlier this week, cloud ETFs are on fire this year and that includes the Global X Cloud Computing ETF Global X Cloud Computing ETF (NASDAQ:CLOU). CLOU is the ETF with the second-largest Shopify allocation at 7.7%.
Of the roughly 30 ETFs with Shopify allocations, only FDNI and CLOU have weights north of 7% to the stock. Of the trio mentioned here, CLOU is the best-performing one this year as its higher by over 17%.
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