In this series, we’ll analyze the performance of stocks in the First Trust ISE Cloud Computing Index Fund (SKYY) ETF that are a part of the Internet Retail subsector.
Since January 2015, SKYY generated returns of 7.47%. It closed at $30.62 on Friday, August 14, 2015.
In the above chart, you can see that the Technology, Hardware & Storage subsector generated returns of -14.93%. Also, the IT Consulting and Communications Equipment subsector generated returns of -7.42% and -2.68%, respectively.
Subsectors that have outperformed SKYY include Home Entertainment Software, Specialized REITs, and Internet Retail with returns of 21.92%, 25.44%, and 112.05%, respectively.
Netflix (NFLX) has generated YTD (year-to-date) returns of 152.84%, whereas Amazon (AMZN) has generated returns of 71.26%, respectively. In comparison, Teradata (TDC), Rackspace (RAX), and Brightcove (BCOV) generated negative returns of 30.11%, 36.15%, and 28.92%, respectively, since January 2015.
Netflix is set to enter Indian markets
In July 2016, Times of India—an Indian newspaper—announced that Netflix is set to enter Indian markets in 2016. Netflix is looking to aggressively expand into international markets and launch streaming services in more than 200 countries by 2017. Currently, Netflix is available in 50 countries with over 62 million subscribers. The acquisition of new online customers is one of the key growth drivers for the firm.
You can get diversified exposure to Netflix by investing in SKYY and the PowerShares QQQ Trust Series 1 ETF (QQQ). They hold 3.55% and 0.86% of the stock.