If you’ve watched the Internet drive massive growth and efficiencies for businesses, and think there’s no stopping that freight train, Internet Titans may be an investment for you.
What’s this investment all about?
Internet Titans is an ‘ETF’, or ‘exchange-traded fund’. The focus of this investment theme is on the biggest companies that drive most of their sales via the Internet. Most of these companies probably impact your life just about every day, in terms of the way you shop, work, communicate, and play. And it’s all happened with amazing speed. In 1995, about 40 million people, or 1% of the population, was online. By 2015, those numbers grew to a staggering 3 billion people, representing over 40% of the world’s population – and the numbers are growing by the second.
What companies does this investment include?
This investment has exposure to 41 huge, Internet-driven companies. One big holding is Amazon, which generated over $80 billion in 2014 selling almost everything under the sun to consumers, and also has a fast-growing, $5 billion cloud-computing service. Another holding is Facebook, now used by a billion people every day. Know what’s cooler than a billion users? Six billion. Alphabet, the company formerly known as Google, includes YouTube, Android, Google Search, Google Maps, Chrome, and Google Play. Each of those products have a billion users, with combined revenue of more than $70 billion. Other holdings include PayPal, SalesForce, LinkedIn, Netflix, and eBay.
Who is this investment for?
Internet Titans could be for you if you think the Internet will keep driving growth—especially since more than half of the world’s population isn’t even online yet. Just remember: while this could be a good addition to a diverse portfolio, it shouldn’t be your only investment.
Why did it make the cut for Stash?
Take a look at the underlying fund. While the past doesn’t predict the future, this fund has performed very well since it was created, mirroring the growth of the Internet in our lives. It has reasonable fees, and it’s run by First Trust—which oversees $32 billion for nonprofits, other companies, and families’ retirement and college expenses.
What are some other investments like this?
If you like the idea of investing in the things you see lots of people buying, and industries you see changing the world around you, here are a few other investments to check out:
- Social Media Mania. These companies keep billions of us connected to friends and families.
- Enjoy Yourself. Leisure giants that feed us, entertain us, and take us on vacations.
- Wireless Wonders. Telecom leaders that keep us online, in range, and on-the-go.
- Money Machines. Companies that finance the world, its people and its businesses.