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

UST Crowded With Sellers
Fri, Dec 9, 3:54 PM ET, by ETF Channel

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

CMBS Crosses Critical Technical Indicator
Fri, Dec 9, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the iShares CMBS ETF (CMBS) entered into oversold territory, ...

IBDO Crowded With Sellers
Fri, Dec 9, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the iBonds Dec 2023 Term Corporate ETF (IBDO) entered ...

Coach Takes Over #128 Spot From Ball
Fri, Dec 9, 11:55 AM ET, by ETF Channel

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

PCY: ETF Outflow Alert
Fri, Dec 9, 11:14 AM ET, by ETF Channel

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

URA Makes Bullish Cross Above Critical Moving Average
Fri, Dec 9, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Uranium ETF (URA) crossed above their 200 day ...

El Pollo Loco Holdings Reaches Analyst Target Price
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of El Pollo Loco Holdings Inc (LOCO) have crossed above the ...

WSTC Crosses Above Average Analyst Target
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of West Corp. (WSTC) have crossed above the average analyst 12-month ...

Synergy Resources Reaches Analyst Target Price
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of Synergy Resources Corp (SYRG) have crossed above the average analyst ...

RUTH Crosses Above Average Analyst Target
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of Ruth's Hospitality Group Inc (RUTH) have crossed above the average ...

MBUU Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Malibu Boats Inc (MBUU) have crossed above the average analyst ...

Chefs' Warehouse Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Chefs' Warehouse Inc (CHEF) have crossed above the average analyst ...

DENN Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Denny's Corp (DENN) have crossed above the average analyst 12-month ...

ASNA Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Ascena Retail Group Inc (ASNA) have crossed above the average ...

Abercrombie & Fitch Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Abercrombie & Fitch Co. (ANF) have crossed above the average ...

Plantronics Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Plantronics, Inc. (PLT) have crossed above the average analyst 12-month ...

WNEB Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Western New England Bancorp Inc (WNEB) have crossed above the ...

ZELTIQ Aesthetics Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of ZELTIQ Aesthetics Inc. (ZLTQ) have crossed above the average analyst ...

Littelfuse Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Littelfuse, Inc. (LFUS) have crossed above the average analyst 12-month ...

Chevron a Top 25 Dividend Giant With 3.76% Yield (CVX)
Fri, Dec 9, 8:54 AM ET, by ETF Channel

Chevron Corporation (CVX) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

DGRE Crosses Above Key Moving Average Level
Thu, Dec 8, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the WisdomTree Emerging Markets Quality Dividend Growth Fund ETF ...

PWB, VMW, APH, AMAT: Large Outflows Detected at ETF
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: PWB, VMW, APH, AMAT Exchange traded funds (ETFs) trade just ...

FDN, YHOO, EBAY, EXPE: ETF Outflow Alert
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FDN, YHOO, EBAY, EXPE Exchange traded funds (ETFs) trade just ...

USDU: ETF Outflow Alert
Thu, Dec 8, 10:54 AM ET, by ETF Channel

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

SPHB, CHK, WMB, MRO: Large Outflows Detected at ETF
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SPHB, CHK, WMB, MRO Exchange traded funds (ETFs) trade just ...

XBI, IONS, TSRO, EXEL: Large Outflows Detected at ETF
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XBI, IONS, TSRO, EXEL Exchange traded funds (ETFs) trade just ...

IVE, USB, TWX, AIG: ETF Inflow Alert
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IVE, USB, TWX, AIG Exchange traded funds (ETFs) trade just ...

12.8% of JXI Holdings Seeing Recent Insider Buys
Thu, Dec 8, 10:14 AM ET, by ETF Channel

A look at the weighted underlying holdings of the iShares Global Utilities ETF (JXI) shows ...

IWF's Underlying Holdings Could Mean 11% Gain Potential
Thu, Dec 8, 9:24 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

The SSW Paradox: Analysts Bearish But Forecast 37.57% Gains
Thu, Dec 8, 9:24 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

The TSLA Paradox: Analysts Bearish But Forecast 22.36% Gains
Thu, Dec 8, 9:24 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

First Foundation Reaches Analyst Target Price
Thu, Dec 8, 9:24 AM ET, by ETF Channel

In recent trading, shares of First Foundation Inc (FFWM) have crossed above the average analyst ...

Imperial Oil Reaches Analyst Target Price
Thu, Dec 8, 9:24 AM ET, by ETF Channel

In recent trading, shares of Imperial Oil Ltd (IMO) have crossed above the average analyst ...

Ternium Reaches Analyst Target Price
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Ternium S A (TX) have crossed above the average analyst ...

SAVE Crosses Above Average Analyst Target
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Spirit Airlines Inc (SAVE) have crossed above the average analyst ...

First Potomac Realty Trust Reaches Analyst Target Price
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of First Potomac Realty Trust (FPO) have crossed above the average ...

CAVM Crosses Above Average Analyst Target
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Cavium Inc (CAVM) have crossed above the average analyst 12-month ...

TEN Crosses Above Average Analyst Target
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Tenneco Inc (TEN) have crossed above the average analyst 12-month ...

Lear Reaches Analyst Target Price
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Lear Corp. (LEA) have crossed above the average analyst 12-month ...

Why AvalonBay Communities is a Top Socially Responsible Dividend Stock (AVB)
Thu, Dec 8, 8:14 AM ET, by ETF Channel

AvalonBay Communities, Inc. (AVB) has been named a Top Socially Responsible Dividend Stock by Dividend ...

United Bankshares a Top Ranked SAFE Dividend Stock With 2.8% Yield (UBSI)
Thu, Dec 8, 8:14 AM ET, by ETF Channel

United Bankshares Inc (UBSI) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying ...

XOM a Top 25 Dividend Giant With $19.75B Held By ETFs
Thu, Dec 8, 8:14 AM ET, by ETF Channel

Exxon Mobil Corp (XOM) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Daily S&P 500 Bear 3x Shares (SPXS) Enters Oversold Territory
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily S&P 500 Bear 3x Shares ETF (SPXS) ...

SPXU Crosses Critical Technical Indicator
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares UltraPro Short S&P500 ETF (SPXU) entered into ...

IEV Crosses Above Key Moving Average Level
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Europe ETF (IEV) crossed above their 200 ...

EWP Makes Bullish Cross Above Critical Moving Average
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Spain Capped ETF (EWP) crossed above ...

PIN Makes Bullish Cross Above Critical Moving Average
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the PowerShares India Portfolio ETF (PIN) crossed above their ...

iShares MSCI Sweden Breaks Above 200-Day Moving Average - Bullish for EWD
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Sweden ETF (EWD) crossed above their ...

IEUR Crosses Above Key Moving Average Level
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Core MSCI Europe ETF (IEUR) crossed above ...

MDIV Makes Bullish Cross Above Critical Moving Average
Wed, Dec 7, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Multi-Asset Diversified Income Index Fund ETF (MDIV) crossed ...

  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 - 2016, 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.