Amid the coronavirus-led shutdown, the internet has become an increasingly important part of people’s lives and the economy. As a result, it just makes sense that stock market investors want to invest in internet-related stocks…
If you could buy only one ETF on a market pullback, maybe it’s not the S&P 500 ETF SPY, -1.93%, even though it tracks the benchmark index S&P 500 SPX, -2.13%. The ETF to consider is First Trust Dow Jones Internet Index Fund FDN, -2.17%.
Let’s explore this issue with the help of a chart.
Note the following:
• The chart shows that when the stock market dropped, the internet ETF outperformed the Dow by about 16%.
• The chart shows that during the recent rally, the internet ETF has outperformed the Dow by about 27%.
• In the market rally, the Nasdaq 100 ETF has been the star performer. However, the internet ETF has outperformed the Nasdaq 100 ETF by about 5.5%.
• The chart shows that the internet ETF fell in the Arora buy zone during the market drop, giving investors an excellent opportunity. Those investors are now sitting on about a 32% profit.
How to buy
For those who are itching to buy, start…
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