AMZN Jump Pulls Vanguard’s VCR, State Street’s XLY Higher

Managing Editor

Aug 04, 2023

Reviewed by: Lisa Barr

Edited by: Lisa Barr

Amazon.com Inc. shares surged after the biggest online retailer beat Wall Street’s profit and sales estimates for the second quarter, which helped push higher consumer ETFs from Vanguard Group and State Street Corp.

State Street’s Consumer Discretionary Select Sector SPDR Fund (XLY), which holds $4 billion of AMZN, or 23% of its total, jumped 3% in morning trading. The Vanguard Consumer Discretionary ETF (VCR), which holds a similar proportion of Amazon stock, gained 2.7%.

Amazon stock has gained 68% this year as sales in its online stores jumped along with growth in its cloud computing business. The company also forecast revenue and operating income that was better than forecasts.

AMZN Held in a Range of ETFs

The company’s stock is held in 364 ETFs, according to etf.com data. Those funds hold 691.3 million shares. On average, U.S. ETFs allocate 3.72% of AMZN to their portfolios.

The ETF with the biggest number of Amazon shares is the SPDR S&P 500 ETF Trust (SPY), with 101 million shares valued at $13.3 billion. The world’s largest ETF added less than 1% today. The far smaller ProShares Online Retail ETF (ONLN), with $110.8 million in assets, has the biggest allocation to Amazon, at 24%, and it rose 1.8% today.

The best-performing ETF in the past 12 months with AMZN as a holding is the Direxion Daily NYSE FANG+ Bull 2X Shares (FNGG), with a return of 40.83%.

Single-stock ETFs betting on Amazon rising also jumped today. The Direxion Daily AMZN Bull 1.5X Shares ETF (AMZU) leaped 16%. The YieldMax AMZN Option Income Strategy ETF (AMZY), an actively managed covered call fund, rose 9.4%

By contrast, the Direxion Daily AMZN Bear 1X Shares (AMZD), which bets against AMZN, dropped 10%. The $4.7 million fund had outflows of $500,000 on Aug. 3.

Contact Ron Day at [email protected] or follow him on Twitter at @RonDayETF 

Ron Day

| Contact: [email protected]

Ron Day is Managing Editor at etf.com. He joined the company in October 2022 and previously served as editor and deputy managing editor.

Ron covered business and financial news at Bloomberg News for 20 years, working on the breaking news, technology, commodities, headlines and First Word teams. He was previously senior editor at ESG news outlet Karma Impact and filled the same role at Boundless Impact. He also covered a variety of beats at New Jersey daily papers including the Daily Record in Parsippany, the North Jersey Herald & News and the Asbury Park Press. Ron's freelance work has been published in AARP.com, Investopedia.com and BigThink.com.

Ron is an advocate and fan of literacy. He hopes to one day master his Telecaster, rather than the other way around. His wonderful family includes a 10-lb. malti-poo named Emmy.

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