Shares of streaming giant Netflix (NFLX) have surged over 65% year-to-date, outpacing the S&P 500’s (SPX) 25.7% gain. This upside is fueled by strong subscriber growth and robust financial results so far in 2024. Also, investors are optimistic about NFLX’s potential to benefit from its growing mobile gaming and advertising businesses. Thus, to gain exposure to NFLX stock, investors may consider investing in these two ETFs: Direxion Daily NFLX Bull 2X Shares (NFXL) and Communication Services Select Sector SPDR Fund (XLC).
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Let’s take a deeper look at these two ETFs.
Direxion Daily NFLX Bull 2X Shares ETF
The NFXL ETF seeks to deliver daily investment results, net of fees and expenses, of 200% of the performance of Netflix’s common shares. Importantly, NFLX constitutes 14.76% of the holdings in the ETF.
Further, the NFXL ETF has $7.64 million in assets under management (AUM) and has an expense ratio of 0.97%. It is worth noting that the ETF has returned 18.6% in the past three months.
Overall, in the one-day time frame, the NFXL ETF is a Buy, according to TipRanks’ technical analysis tool. This is based on eight Bullish, one Neutral, and four Bearish signals.
Communication Services Select Sector SPDR Fund
The XLC ETF tracks the performance of the Communication Services Select Sector Index. It provides exposure to several telecommunication services, media, and entertainment services companies. It is worth highlighting that NFLX accounts for 6.34% of XLC’s total holdings.
The XLC ETF has $19.45 billion in AUM and an expense ratio of 0.09%. Its top 10 holdings contribute 73.36% of the portfolio. Over the past six months, XLC ETF has generated a return of 19.14%.
According to TipRanks’ technical analysis tool, XLC ETF is a Buy. This is based on 14 Bullish, two Neutral, and six Bearish signals.
Concluding Thoughts
ETFs are a low-cost, liquid, and transparent way to participate in the market. Investors seeking exposure to Netflix stock might consider ETFs like NFXL and XLC, which have received a Buy rating from TipRanks’ technical analysis tool.
