4 Major Indices That Amazon Is a Member Of

Gain exposure to Amazon for less than its current price through ETFs that track the 4 major indices

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When it comes to stocks, an index is a basket of stocks that has the goal of tracking their performance in a standardized way. Indices are a way in which people can become invested in a basket of stocks without owning each stock individually. Wait, I thought you could not invest directly into indices? That is correct, which is why most major indices have mutual funds and exchange-traded funds (ETFs) that track them, allowing investors to experience gains from investing in standardized baskets of stocks. The focus of this article will be on ETFs.

As of July 24th, Amazon’s share price is $3,008.91. Amazon is one of the leading in a multitude of businesses, such as e-commerce, artificial intelligence, streaming, and cloud computing. That allows them to have a strong economic moat. The current price of Amazon is a high price for any investor.

The 4 major indices that Amazon is a member of are the S&P 500, the S&P 500 Consumer Discretionary, the S&P 100, and the NASDAQ 100. With each of these indices, there are ETFs whose goals are to track them, meaning that you can gain exposure to Amazon at a lower price by investing in an ETF.

Note: It is essential to always do your own research and due diligence before investing.

1. S&P 500

The S&P 500 Index can be considered the king of all indices. It is one of the most widely known indices. It is a market-capitalization-weighted index of the 500 largest publicly-traded companies in the United States. As of July 24th, Amazon has a weight of approximately 4% in the S&P 500.

The following 3 ETFs track the S&P 500 Index. Each price and expense ratio is as of July 24th:

SPDR S&P 500 (SPY)

  • Price: $320.88
  • Expense Ratio: 0.09%

Vanguard S&P 500 (VOO)

  • Price: $294.82
  • Expense Ratio: 0.03%

iShares Core S&P 500 (IVV)

  • Price: $322.13
  • Expense Ratio: 0.03%

2. S&P 500 Consumer Discretionary

The S&P 500 Consumer Discretionary Index is an index that tracks companies in the S&P 500 Index that fall under the Consumer Discretionary sector, which is a sector for companies that produce goods and services that are not considered essential. As of July 24th, Amazon has a weight of approximately 22% in the index.

The following 2 ETFs track the S&P 500 Consumer Discretionary Index. Each price and expense ratio is as of July 24th:

Consumer Discretionary Select Sector SPDR (XLY)

  • Price: $135.54
  • Expense Ratio: 0.13%

Vanguard Consumer Discretionary (VCR)

  • Price: $214.57
  • Expense Ratio: 0.10%

3. S&P 100

The S&P 100 Index is a market-capitalization-weighted index that is a subset of the S&P 500 Index. It tracks the 100 largest and most established companies from the S&P 500 Index. As of July 24th, Amazon has a weight of approximately 7% in the index.

The following is an ETF that tracks the S&P 100 Index with its price and expense ratio as of July 24th:

iShares S&P 100 (OEF)

  • Price: $135.54
  • Expense Ratio: 0.13%

4. NASDAQ 100

The NASDAQ 100 Index is one of the most widely known stock indices. It is a modified-capitalization-weighted index of the 100 largest non-financial companies listed on the Nasdaq stock exchange. As of July 24th, Amazon has a weight of approximately 11%.

The following is an ETF that tracks the NASDAQ 100 Index with its price per share and expense ratio as of July 24th:

Invesco QQQ (QQQ)

  • Price: $255.56
  • Expense Ratio: 0.20%

As you can see, there are multiple ways to gain exposure to Amazon without directly investing in Amazon. As stated earlier, a share of Amazon is currently $3,008.91. That is a high price point, but now that you are familiar with ETFs ranging from $100 to $350 that will allow you to gain exposure to Amazon, you can reconsider how you will like to gain exposure to Amazon.

It is also essential to know that you alternatively invest in fractional shares of Amazon through online brokerages such as Robinhood, M1 Finance, and Fidelity. The power of ETFs is that you also gain exposure to other strong and proven companies. ETFs are a beneficial way to invest for investors of any level. Make sure to do your research and due diligence so that you can continue down your path of long-term financial success.

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