In the midst of the coronavirus shutdown, the Internet has become an increasingly important part of people's lives and economies. Therefore, it makes sense that stock market investors want to invest in internet related stocks.
If you could buy only one ETF in a withdrawal, it might not be the S&P 500 ETF
SPY,
even if it tracks the S&P 500 benchmark
SPX
The ETF to consider is the First Trust Dow Jones Internet Index Fund
FDN
Let's explore this problem using a graph.
Graphic
Please click here for an annotated chart of the Dow Jones Industrial Average ETF
DAY
following the Dow Jones industrial average
DJIA
compared to three other ETFs.
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Consider the following:
• The table compares the Dow Jones Industrial Average ETF with the S&P 500 ETF; the Nasdaq 100 ETF
QQQ,
representing the Nasdaq 100
NDX
; and Internet ETF.
• The graph shows that when the stock market fell, the Internet ETF outperformed the Dow Jones by around 16%.
• The graph shows that during the recent recovery, the Internet ETF outperformed the Dow Jones by around 27%.
• In the market rally, the Nasdaq 100 ETF was the star player. However, the Internet ETF outperformed the Nasdaq 100 ETF by around 5.5%.
• The graph shows that the Internet ETF fell in the buy area of Arora during the stock market crash, offering investors a great opportunity. These investors now make a profit of around 32%.
• The reason the Internet ETF outperformed is because its stocks include Amazon
AMZN
Facebook
FULL BOARD,
Pay Pal
PYPL
How to buy
For those who are eager to go shopping, start with a small challenge: evolve. As a precaution, the emphasis is on "climbing".
Answers to your questions
The answers to some of your questions can be found in my previous writings. Please click here for more details.
Disclosure: subscribers to Arora's report
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