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ETFs Recommended for Amazon Investors After Stock Dip

Following an 8% decline in Amazon's stock, analysts suggest two ETFs for exposure.

August 1, 2025 at 08:27 PM

Looking for Exposure to Amazon Stock (AMZN) Post Q2 Dip? Try These Two ETFs

Amazon's cautious outlook leads to ETF recommendations for long-term investors.

Investors Examine ETFs Following Amazon's Q2 Earnings Drop

Amazon's second-quarter results exceeded earnings and revenue estimates. However, a wary forecast for Q3 resulted in an 8% drop in its stock. Investors are particularly eager for updates on Amazon's $100 billion investment in artificial intelligence. For those still optimistic about the company's future, two ETFs offer substantial exposure: the Fidelity MSCI Consumer Discretionary Index ETF and the Consumer Discretionary Select Sector SPDR Fund. The FDIS ETF allocates over 24% of its total holdings to Amazon, while the XLY ETF features a similar percentage. Both ETFs have low expense ratios and have shown positive returns in recent months, making them appealing options for diversifying investment portfolios.

Key Takeaways

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Amazon's stock dropped 8% following cautious Q3 guidance.

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EDTs offer indirect exposure to Amazon and reduce investment risk.

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Fidelity MSCI ETF has a 24.43% stake in Amazon, with low fees.

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Consumer Discretionary ETF also features significant Amazon holdings.

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Both ETFs have produced solid returns over the past quarter.

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Investor interest remains strong in tech stocks despite volatility.

"ETFs provide indirect exposure to AMZN stock, reducing risk compared to investing directly in the stock."

This highlights the benefits of ETFs amid market volatility.

"Investors eager for returns see potential in Amazon's massive AI investment."

This reflects growing investor interest in tech despite recent declines.

The turbulence surrounding Amazon's stock performance illustrates the volatility of tech investments, especially in sectors reliant on future growth promises. While the latest decline may shock some, it may also create opportunities for savvy investors. The recommended ETFs allow investors to hedge their bets while remaining exposed to Amazon's growth prospects in cloud services and AI. This blend of caution and optimism highlights a trend where diversification becomes vital in turbulent markets. As investor sentiment shifts, the focus on ETFs could reshape strategies as companies continue to navigate their profitability amid high investments in innovation.