Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

ETF Picks For 3 Of The World’s Most Innovative Companies

Wed, Nov 7, 8:16 AM ET, by Michael Johnston

When it comes to the world of exchange-traded products, there are virtually no limits as to how investors can choose to play nearly every corner of the market. From compelling quant-based methodologies to hyper-targeted sector funds, there is an ETF to fit essentially every investor’s investment objective. But for those looking to gain access to some of the most promising companies on the market, a look at the Forbes’ “World’s Most Innovative Companies” list may present itself with several lucrative opportunities [see also How To Pick The Right ETF Every Time].

These companies are selected based on a number of qualitative factors, including cash flow valuations, projected earnings and an “innovation premium.” Firms that make the list are considered to not only be the most innovative companies today, but also those that have laid the groundwork to continue being pioneers in their industries. For investors wanting to cash in on the top three most innovative companies, we outline several ways to play:

Salesforce.com (CRM): Cloud Computing Genius

This software and programming giant takes first place on Forbes’ World’s Most Innovative Companies list, as the company has emerged as a compelling leader in the tech space. Salesforce.com focuses on providing enterprise cloud computing applications to businesses of all sizes and industries around the globe. Currently, CRM boasts a market cap of $20.55 billion and has gained a whopping 46% thus far in 2012 [see also High Tech ETFdb Portfolio].

For those looking to cash in on this cloud computing trailblazer, there are several ETF options. The S&P North American Technology-Software Index Fund (IGV) allocates 7.71% of total assets to CRM, and is also the cheapest pick with its expense ratio of only 48 basis points. But if size and liquidity are the ultimate selling points, the DJ Internet Index Fund (FDN) takes the cake, while still providing the second highest weighting to CRM. The only other ETFs that offer exposure to Salesforce.com are the SPDR MS Technology ETF, MTK and the Large-Cap Growth Equity Strategy Fund, RWG.

Alexion Pharmaceuticals (ALXN): Bio-Pharma Pioneer

This pharmaceutical juggernaut is one of the most well-known and respected biopharmaceutical companies in the world, focusing on developing therapeutic products for patients with severe and ultra-rare disorders. Founded in 1992 in Cheshire Connecticut, the company has already come out with the first and only therapeutic approved for patients suffering from the life-threatening PNH and aHUS diseases. Alexion recently acquired four pharmaceutical companies, and is well on its way to filling its pipeline with more innovative biopharmaceutical products [see also Vote For Obama Or Romney With These ETFs].

Currently, there are twelve exchange-traded products that offer exposure to Alexion, with the Nasdaq Biotechnology ETF (IBB) giving the company the highest weighting at 7.54%. PowerShares’ Dynamic Biotech & Genome ETF (PBE) is another compelling choice, as this fund tracks a fundamentally-weighted index that is designed to measure the performance of both biotechnology and genome companies in the United States. For those cost-conscious investors, the Russell Midcap Index Fund (IWR) may be a more attractive option, though the fund allocates the smallest weighting to Alexion out of the bunch. Other ETF options include:

  • NYSE Arca Biotechnology Index Fund (FBT)
  • Market Vectors Biotech ETF (BBH)
  • Health Care AlphaDEX (FXH)
  • DWA Technical Leaders Portfolio (PDP)

Amazon.com (AMZN): Online Retail King

There is perhaps no bigger name than Amazon in online retailing space, as this company has continued to be a dominating presence on both the tech scene and Wall Street. Founded in 1994, Amazon has grown to be a $107.4 billion company, with its shares exchanging hands nearly 3.3 million times a day. In addition to its online retailing business, the company has expanded its operations to developing one of the hottest products on the tech market: the Kindle e-reader. Considering this behemoth’s successful history and its promising outlook, it is clear that Amazon will surely continue to be a force to be reckoned with for years to come [see also TDIV: Where Technology Meets Dividends].

For those looking to add exposure to this online retail king, there are numerous ways to play. Based on weightings alone, Van Eck’s Market Vectors Retail ETF (RTH) is the top pick, as this fund allocates 9.84% of its assets to the company. First Trust’s FDN is another compelling option, with Amazon and Salesforce.com both making an appearance in the fund’s top five holdings. In regards to expenses, State Street’s XLY is the most economic option, as the fund charges only 0.18% and allocates nearly 6% of its assets to Amazon alone. Other ETFs with meaningful allocations to Amazon include:

  • Nasdaq Internet Portfolio (PNQI)
  • Consumer Discretion ETF (VCR)
  • Dow Jones U.S. Consumer Index Fund (IYC)
  • Large-Cap Growth Equity Strategy Fund (RWG)

Follow me on Twitter @DPylypczak

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.


SDI Glossary: "Alpha" Definition
SDI Glossary: "Dividend" Definition
SDI Glossary: "Equity" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Leader" Definition
SDI Glossary: "NYSE" Definition
This Article's Word Cloud:   Alexion   Amazon   Biotechnology   Consumer   ETFdb   ETFs   Equity   Forbes   Fund   Growth   Index   Most   Portfolio   Salesforce   Technology   Vectors   allocates   also   assets   both   cash   companies   company   compelling   every   exposure   fund   innovative   investors   list   looking   market   more   most   nearly   offer   online   only   option   play   products   retailing   several   tech   that   there   this   those   weighting   with

| More

Why AFLAC is a Top Socially Responsible Dividend Stock (AFL)
Wed, Sep 2, 8:24 AM ET, by ETF Channel

AFLAC Inc. (AFL) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

GXC Crosses Critical Technical Indicator
Tue, Sep 1, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P China ETF (GXC) entered into oversold ...

Shares of FXI Now Oversold
Tue, Sep 1, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares China Large-Cap ETF (FXI) entered into oversold ...

International SmallCap Values (DLS) Enters Oversold Territory
Tue, Sep 1, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the International SmallCap Values ETF (DLS) entered into oversold ...

Raytheon Takes Over #91 Spot From Stericycle
Tue, Sep 1, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

Shares of VGK Now Oversold
Tue, Sep 1, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the Vanguard FTSE Europe ETF (VGK) entered into oversold ...

IEV Crosses Critical Technical Indicator
Tue, Sep 1, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Europe ETF (IEV) entered into oversold territory, ...

Shares of IEUR Now Oversold
Tue, Sep 1, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Core MSCI Europe ETF (IEUR) entered into ...

EWU Crosses Critical Technical Indicator
Tue, Sep 1, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI United Kingdom ETF (EWU) entered into ...

KRE, NPBC, GWB, STL: Large Outflows Detected at ETF
Tue, Sep 1, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: KRE, NPBC, GWB, STL Exchange traded funds (ETFs) trade just ...

EMLC Crosses Critical Technical Indicator
Tue, Sep 1, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the Emerging Markets Local Currency Bond ETF (EMLC) entered ...

10.5% of XLG Holdings Seeing Recent Insider Buys
Tue, Sep 1, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Guggenheim Russell Top 50 Mega Cap ...

ProShares Ultra 7-10 Year Treasury (UST) Shares Cross Below 200 DMA
Mon, Aug 31, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the ProShares Ultra 7-10 Year Treasury ETF (UST) crossed ...

Interpublic Group of Companies Takes Over #86 Spot From Navient
Mon, Aug 31, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

iShares J.P. Morgan USD Emerging Markets Bond ETF Experiences Big Outflow
Mon, Aug 31, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EMB Exchange traded funds (ETFs) trade just like stocks, but ...

EWZ: ETF Outflow Alert
Mon, Aug 31, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EWZ Exchange traded funds (ETFs) trade just like stocks, but ...

IWN, ISBC, BEE, HIW: ETF Inflow Alert
Mon, Aug 31, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWN, ISBC, BEE, HIW Exchange traded funds (ETFs) trade just ...

VPU, NEP, UTL, CTWS: Large Outflows Detected at ETF
Mon, Aug 31, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VPU, NEP, UTL, CTWS Exchange traded funds (ETFs) trade just ...

St Jude Medical Takes Over #112 Spot From EQT
Fri, Aug 28, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

DVY, CME, KMB, CLX: Large Outflows Detected at ETF
Fri, Aug 28, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: DVY, CME, KMB, CLX Exchange traded funds (ETFs) trade just ...

VCR, F, TWC, TGT: Large Outflows Detected at ETF
Fri, Aug 28, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VCR, F, TWC, TGT Exchange traded funds (ETFs) trade just ...

RSP, CB, TE, CCE: ETF Outflow Alert
Fri, Aug 28, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: RSP, CB, TE, CCE Exchange traded funds (ETFs) trade just ...

VGK: ETF Outflow Alert
Fri, Aug 28, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VGK Exchange traded funds (ETFs) trade just like stocks, but ...

Utilities Select Sector SPDR Fund Experiences Big Inflow
Fri, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLU, NEE, D, SO Exchange traded funds (ETFs) trade just ...

GDX, GG, FNV, NEM: Large Inflows Detected at ETF
Fri, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: GDX, GG, FNV, NEM Exchange traded funds (ETFs) trade just ...

JNK: Large Outflows Detected at ETF
Fri, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: JNK Exchange traded funds (ETFs) trade just like stocks, but ...

14.7% of FRAK Holdings Seeing Recent Insider Buys
Fri, Aug 28, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Unconventional Oil & Gas ETF (FRAK) ...

LMT a Top 25 Dividend Giant With $2.51B Held By ETFs
Fri, Aug 28, 8:34 AM ET, by ETF Channel

Lockheed Martin Corp. (LMT) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Google Takes Over #2 Spot From Berkshire Hathaway
Thu, Aug 27, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

IEI: Large Inflows Detected at ETF
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IEI Exchange traded funds (ETFs) trade just like stocks, but ...

IVW, NKE, BIIB, KMI: Large Outflows Detected at ETF
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVW, NKE, BIIB, KMI Exchange traded funds (ETFs) trade just ...

Vanguard Total Bond Market ETF Experiences Big Inflow
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: BND Exchange traded funds (ETFs) trade just like stocks, but ...

DGRW, AAPL, MO, MCD: Large Inflows Detected at ETF
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DGRW, AAPL, MO, MCD Exchange traded funds (ETFs) trade just ...

RTH Crosses Above Key Moving Average Level
Thu, Aug 27, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the Retail ETF (RTH) crossed above their 200 day ...

10.6% of FAB Holdings Seeing Recent Insider Buys
Thu, Aug 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Multi Cap Value AlphaDEX ...

Why Analog Devices is a Top Socially Responsible Dividend Stock (ADI)
Thu, Aug 27, 9:24 AM ET, by ETF Channel

Analog Devices, Inc. (ADI) has been named a Top Socially Responsible Dividend Stock by Dividend ...

NextEra Energy a Top 25 Dividend Giant With 3.03% Yield (NEE)
Thu, Aug 27, 9:24 AM ET, by ETF Channel

NextEra Energy Inc (NEE) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Cincinnati Financial a Top Ranked SAFE Dividend Stock With 3.5% Yield (CINF)
Thu, Aug 27, 9:24 AM ET, by ETF Channel

Cincinnati Financial Corp. (CINF) has been named to the Dividend Channel ''S.A.F.E. ...

Shares of STIP Now Oversold
Wed, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 0-5 Year TIPS Bond ETF (STIP) entered ...

IBMG Makes Notable Cross Below Critical Moving Average
Wed, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iBonds Sep 2018 AMT-Free Muni Bond ETF (IBMG) ...

IEF Makes Notable Cross Below Critical Moving Average
Wed, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 7-10 Year Treasury Bond ETF (IEF) crossed ...

MBB: Large Outflows Detected at ETF
Wed, Aug 26, 12:34 PM ET, by ETF Channel

Symbols mentioned in this story: MBB Exchange traded funds (ETFs) trade just like stocks, but ...

VNQI, BOXC, FENG, XIN: ETF Inflow Alert
Wed, Aug 26, 12:34 PM ET, by ETF Channel

Symbols mentioned in this story: VNQI, BOXC, FENG, XIN Exchange traded funds (ETFs) trade just ...

VWOB: ETF Inflow Alert
Wed, Aug 26, 12:24 PM ET, by ETF Channel

Symbols mentioned in this story: VWOB Exchange traded funds (ETFs) trade just like stocks, but ...

IWB, DIS, UNH, WMT: Large Outflows Detected at ETF
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: IWB, DIS, UNH, WMT Exchange traded funds (ETFs) trade just ...

PSQ: ETF Inflow Alert
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: PSQ Exchange traded funds (ETFs) trade just like stocks, but ...

UPRO: ETF Inflow Alert
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: UPRO Exchange traded funds (ETFs) trade just like stocks, but ...

VEA, ATE, HQCL, MFD: Large Inflows Detected at ETF
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VEA, ATE, HQCL, MFD Exchange traded funds (ETFs) trade just ...

HD a Top 25 Dividend Giant With $4.85B Held By ETFs
Wed, Aug 26, 10:34 AM ET, by ETF Channel

Home Depot Inc (HD) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Shares of REZ Now Oversold
Tue, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Residential Real Estate Capped ETF (REZ) entered ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

ETF Picks For 3 Of The World’s Most Innovative Companies | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.