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Amazon ETFs in Focus Post Q1 Earnings Beat, Shares Fall
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Amazon (AMZN - Free Report) reported stronger-than-expected first-quarter 2025 results. The online behemoth outpaced earnings and revenue estimates but offered a muted second-quarter operating income guidance on tariff uncertainty.
Shares of AMZN dropped as much as 5% in aftermarket hours on elevated volume, putting ETFs having a substantial allocation to this online behemoth in focus. These include ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) .
The e-commerce giant reported earnings per share of $1.59, outpacing the Zacks Consensus Estimate of $1.35 and the year-ago earnings of 98 cents. Revenues grew 10% year over year to $155.7 billion and edged past the consensus estimate of $154.56 billion (read: Can Q1 Earnings Inject Fresh Life Into Magnificent 7 ETFs?).
Amazon's advertising business was its fastest-growing division in the quarter. Ad revenues increased 19% year over year to $13.9 billion. Online store sales grew 6% to $57.41 billion, while Amazon’s cloud computing business — Amazon Web Services (“AWS”) — revenues soared 17% year over year to $29.3 billion.
Like other tech companies, Amazon has ramped up investments in data centers, chips and the power needed for AI workloads. It is also investing in its own computer chips and those developed by NVIDIA (NVDA - Free Report) .
The world's largest online retailer expects revenues in the range of $159-$164 billion for the second quarter of 2025. The Zacks Consensus Estimate is pegged at $160.46 billion. However, CFO Brian Olsavsky issued a cautious outlook due to uncertain consumer demand in the face of President Trump's shifting tariff policies. Amazon expects operating income of $13-$17.5 billion in the second quarter.
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeroes in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. Amazon is the top firm, accounting for 23.9% of the portfolio. ProShares Online Retail ETF has amassed $66.3 million in its asset base and currently trades in a moderate volume of around 21,000 shares a day on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 262 stocks in its basket. Of these, Amazon takes the top spot with a 22.2% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.7 billion in its asset base while trading in a good volume of around 164,000 shares a day on average. It charges 8 bps in annual fees from investors and currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook (read: Is Weak Consumer Sentiment Hurting Discretionary ETFs?).
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 293 stocks in its basket. Of these, Amazon occupies the top position, with a 22% allocation. Broadline Retail takes the largest share at 25%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots. VCR charges investors 9 bps in annual fees, while volume is moderate at nearly 157,000 shares a day. The product has managed about $5.3 billion in its asset base and currently carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most popular product in this space, with AUM of nearly $19.5 billion and an average daily volume of around 6.5 million shares. Holding 51 securities in its basket, Amazon takes the top spot with 21.9% of assets. Hotels, restaurants & leisure, specialty retail, broadline retail, and automobiles are the top four sectors with double-digit exposure each. Consumer Discretionary Select Sector SPDR Fund charges 9 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with an 18.1% share. VanEck Vectors Retail ETF has amassed $235.9 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 9,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook.
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Amazon ETFs in Focus Post Q1 Earnings Beat, Shares Fall
Amazon (AMZN - Free Report) reported stronger-than-expected first-quarter 2025 results. The online behemoth outpaced earnings and revenue estimates but offered a muted second-quarter operating income guidance on tariff uncertainty.
Shares of AMZN dropped as much as 5% in aftermarket hours on elevated volume, putting ETFs having a substantial allocation to this online behemoth in focus. These include ProShares Online Retail ETF (ONLN - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) .
The e-commerce giant reported earnings per share of $1.59, outpacing the Zacks Consensus Estimate of $1.35 and the year-ago earnings of 98 cents. Revenues grew 10% year over year to $155.7 billion and edged past the consensus estimate of $154.56 billion (read: Can Q1 Earnings Inject Fresh Life Into Magnificent 7 ETFs?).
Amazon's advertising business was its fastest-growing division in the quarter. Ad revenues increased 19% year over year to $13.9 billion. Online store sales grew 6% to $57.41 billion, while Amazon’s cloud computing business — Amazon Web Services (“AWS”) — revenues soared 17% year over year to $29.3 billion.
Like other tech companies, Amazon has ramped up investments in data centers, chips and the power needed for AI workloads. It is also investing in its own computer chips and those developed by NVIDIA (NVDA - Free Report) .
The world's largest online retailer expects revenues in the range of $159-$164 billion for the second quarter of 2025. The Zacks Consensus Estimate is pegged at $160.46 billion. However, CFO Brian Olsavsky issued a cautious outlook due to uncertain consumer demand in the face of President Trump's shifting tariff policies. Amazon expects operating income of $13-$17.5 billion in the second quarter.
ETFs to Buy
ProShares Online Retail ETF (ONLN - Free Report)
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeroes in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. Amazon is the top firm, accounting for 23.9% of the portfolio. ProShares Online Retail ETF has amassed $66.3 million in its asset base and currently trades in a moderate volume of around 21,000 shares a day on average. It charges 58 bps in annual fees from investors.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 262 stocks in its basket. Of these, Amazon takes the top spot with a 22.2% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.7 billion in its asset base while trading in a good volume of around 164,000 shares a day on average. It charges 8 bps in annual fees from investors and currently has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook (read: Is Weak Consumer Sentiment Hurting Discretionary ETFs?).
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 293 stocks in its basket. Of these, Amazon occupies the top position, with a 22% allocation. Broadline Retail takes the largest share at 25%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots. VCR charges investors 9 bps in annual fees, while volume is moderate at nearly 157,000 shares a day. The product has managed about $5.3 billion in its asset base and currently carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most popular product in this space, with AUM of nearly $19.5 billion and an average daily volume of around 6.5 million shares. Holding 51 securities in its basket, Amazon takes the top spot with 21.9% of assets. Hotels, restaurants & leisure, specialty retail, broadline retail, and automobiles are the top four sectors with double-digit exposure each. Consumer Discretionary Select Sector SPDR Fund charges 9 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
VanEck Vectors Retail ETF (RTH - Free Report)
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with an 18.1% share. VanEck Vectors Retail ETF has amassed $235.9 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 9,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook.