Airbnb’s (ABNB) growth prospects remain strong, driven by increasing demand for unique travel experiences and its global reach. The company is also investing up to $250 million in new ventures to enhance guest experiences. This strategy, along with expansion plans in markets like Korea and Japan, positions ABNB for long-term growth. To invest in Airbnb stock, investors may consider these two ETFs: Pacer U.S. Cash Cows Growth ETF (BUL) and Global X PropTech ETF (PTEC).
It is worth mentioning that ABNB is scheduled to report its Q1 results on May 1. Currently, analysts expect Airbnb to report Q1 earnings per share (EPS) of $0.23, down 43.9% from the prior-year quarter. Also, the company’s revenue is expected to increase 5.6% to $2.26 billion in the first quarter.
Let’s take a deeper look at these two ETFs.
Pacer U.S. Cash Cows Growth ETF
The BUL ETF invests in U.S. companies with strong free cash flow and growth potential. It tracks the Pacer Cash Cows Growth Index, which consists of growth-oriented companies with high free cash flow yields.
ABNB stock constitutes 4.99% of the ETF’s holdings. Apart from Airbnb, some of the top stocks in the BUL ETF are Uber Technologies (UBER), Salesforce (CRM), and Booking Holdings (BKNG). Overall, the ETF has $70.07 million in assets under management (AUM). Also, it has an expense ratio of 0.6%. The BUL ETF has returned 6.4% in the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 51 stocks held, 42 have Buys and nine have a Hold rating. At $53.96, the average BUL ETF price target implies a 21.83% upside potential.
Global X PropTech ETF
The PTEC ETF provides exposure to a diverse range of PropTech companies globally. It aims to benefit from the growing demand for tech-driven solutions in buying, selling, renting, and managing properties. Importantly, Airbnb stock accounts for 6.9% of PTEC’s total holdings.
Some of the top holdings in PTEC ETF include CoStar (CSGP), Guidewire Software (GWRE), and Zillow Group (Z). Overall, the ETF has $1.75 million in AUM. Also, it has an expense ratio of 0.5%. The PTEC ETF has gained 13% in the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 31 stocks held, 18 have Buys and 13 have a Hold rating. At $41.08, the average PTEC ETF price target implies an 18.7% upside potential.
Concluding Thoughts
ETFs provide a diversified way to invest in Airbnb, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a low-cost, liquid, and transparent way to participate in the market. Investors seeking ETF recommendations might consider BUL and PTEC, as these ETFs offer significant exposure to ABNB stock.