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Amazon.com, Inc. (AMZN) - free report >>
Netflix, Inc. (NFLX) - free report >>
iShares U.S. Tech Independence Focused ETF (IETC) - free report >>
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2 New Sector ETFs that Soared in Q2
Corporate business models continue to evolve, thanks mainly to technological advancements. However, traditional sector classifications are backward looking and fail to capture these shifts. Under these classifications, a single company sits in only one sector.
Amazon (AMZN - Free Report) is an e-commerce giant but over the past few years it has expanded to other businesses. Amazon Web Services (AWS)—its cloud computing segment—accounted for about 73% of its operating income last quarter.
With the acquisition of Whole Foods and PillPack, Amazon is in grocery and healthcare businesses too. However, under GICS it is classified as a consumer discretionary company.
BlackRock’s evolved sector approach uses data science and machine learning techniques to respond to these changing dynamics. Under this classification, a company’s total market capitalization can be assigned to one or more sectors.
Amazon gets 64% of its market capitalization assigned to the technology sector and 36% to the discretionary spending sector.
In this video, we have highlighted two evolved sector ETFs, that made their debut on March 21.
As tech continues to be one of the best performing sectors, the iShares Evolved U.S. Technology ETF (IETC - Free Report) gained about 12% in the second quarter.
Media & Entertainment stocks have also done pretty well of late since Netflix (NFLX - Free Report) has upended the industry and led to a merger spree. The iShares Evolved U.S. Media and Entertainment ETF surged more than 13% in Q2.
To learn more about these ETFs, please watch the short video above.
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