3 ETFs For Netflix Earnings

Netflix Inc NFLX, one of the prime beneficiaries of the “stay safe at home” theme foisted upon Americans by the COVID-19 pandemic, reports first-quarter results Tuesday after the close. Wall Street is expecting the streaming entertainment giant to post a profit for the quarter ending March 31 of $1.61 per share, up from 76 cents per share a year earlier.

With an avalanche of S&P 500 earnings coming this week, few of which are expected to be positive among marquee companies, Netflix could be a bright spot.

Subscriber growth will be in focus, but analysts are bullish on the stock heading into the after-the-bell earnings report today.

“Heading into the company’s first-quarter earnings report Tuesday, analysts have increased their subscriber growth estimates above management’s previous guidance for 7 million in the first quarter, with various observers mentioning a consensus estimate of 7.5 million,” according to The Hollywood Reporter.

For investors that want to play the event via exchange traded funds, here are three with substantial weights to Netflix stock.

Invesco NASDAQ Internet ETF (PNQI)

The Invesco NASDAQ Internet ETF PNQI allocates 10.46% of its weight to Netflix, making it the only ETF with a double-digit weight to the streaming stock. The $527-million PNQI follows the NASDAQ Internet Index.

“The index is designed to track the performance of the largest and most liquid U.S.-listed companies engaged in internet-related businesses and that are listed on one of the major U.S. stock exchanges,” according to Invesco.

Invesco S&P 500 Equal Weight Communication Services ETF (EWCO)

Netflix is classified as a communication services stock, but in the cap-weighted funds tracking this sector, the stock is dwarfed by the likes of Facebook FB and Alphabet GOOG GOOGL. 

It's a different Netflix ballgame in the Invesco S&P 500 Equal Weight Communication Services ETF EWCO. EWCO, the first equal-weight fund dedicated to this sector, allocates 7.51% of its weight to Netflix, making the stock the fund's largest holding.

For those keeping score at home, just two ETFs, including the aforementioned PNQI, have larger Netflix allocations than EWCO.

ERShares Entrepreneur 30 ETF (ENTR)

The ERShares Entrepreneur 30 ETF ENTR is an overlooked ETF, but give the fund some credit. It's up more than 4% this year and allocates more than 6% of its weight to Netflix.

ENTR follows the Entrepreneur 30 Index, which screens based on multiple factors including compensation, management, ownership, profitability and corporate structure. The fund allocates almost 60% of its weight to tech stocks.

Photo courtesy of Netflix.