Amazon’s Dip: ETFs for the Slightly Cynical Investor

by

Right, Amazon. Let’s be honest, it’s been a bit of a wobble, hasn’t it? The market had a collective intake of breath when they announced they’re throwing a cool $200 billion at AI. Two. Hundred. Billion. It’s the kind of number that makes me feel financially insecure, and I just checked my bank balance five minutes ago. The stock took a proper dive – down 16.5% in February. It’s almost a bear market, which, let’s face it, is just a fancy way of saying ‘things aren’t great.’

And the whispers are getting louder about how they’re going to pay for all this. Cash flow negative? Oh, lovely. That’s exactly what you want to hear when you’ve got a Prime subscription and a penchant for next-day delivery. Over the last five years, the stock’s only up 25.3%. It’s…fine. If you compare it to a slightly more enthusiastic Nasdaq-100 or S&P 500, it feels a bit like bringing a water pistol to a fireworks display. But, hey, let’s not write the obit just yet.

AI could actually be a game-changer for Amazon Web Services, apparently. And their advertising business is doing surprisingly well – up 22% last quarter. Which, if you think about it, is terrifying. They know what I bought last Tuesday. They always know. Anyway, there’s a chance this could all turn around. If you’re not quite ready to bet the house on a full Amazon resurrection, but you still want a piece of the action, here are a few ETFs to consider. I’ve done the slightly depressing research so you don’t have to.

A Cost-Effective Amazon Proxy (Because We’re All About Value, Right?)

Nearly 480 ETFs have Amazon lurking in their top 15 holdings. The Vanguard Consumer Discretionary ETF (VCR) has a particularly…enthusiastic 21.2% allocation to it. It’s basically Amazon in disguise. Although, to be fair, it’s a two-horse race. Tesla hogs another 18.1%. So, if you’re feeling indecisive, just close your eyes and pick one. Honestly, it’s probably 50/50.

Loading widget...

It’s a sensible option for those of us who prefer a ‘buy and hold’ strategy. The annual expense ratio is a measly 0.09% – that’s $9 on a $10,000 investment. The category average is 0.76%. Which means you’re saving enough to buy… well, a very small coffee. But still, it’s the principle of the thing.

A Pure Retail Play (For When You Need to Justify Your Shopping Habits)

Let’s be real, Amazon still dominates online retail. It’s the king. The VanEck Retail ETF (RTH) reflects that, with a hefty 17.2% allocation to the behemoth. It’s exceeded by only a handful of ETFs. It’s a bit less concentrated than the Vanguard one, with Amazon, Walmart, and Costco making up about 39% of the portfolio.

But don’t let that fool you. It’s not just a consumer discretionary ETF. It’s got a mix of consumer staples, healthcare, and even industrial stocks thrown in. More than 17% of it is…other stuff. It’s a strong way to position for an Amazon rebound, if you’re looking for a slightly less obvious route.

One for the Risk Takers (Or Those Who Enjoy a Good Gamble)

Remember that post-earnings drubbing Amazon took last week? The Direxion Daily AMZN Bull 2x Shares ETF (AMZU) really felt the pain. Because, as the name suggests, it tries to deliver double Amazon’s daily performance. Which means when the market decides Amazon is having a bad day, this fund gets absolutely hammered. It’s a bit like watching your worst nightmare unfold in real-time.

Loading widget...

But, on the flip side, when Amazon shares are soaring, this ETF’s gains are amplified. Just…over short holding periods. A day, maybe a few days. This is crucial. Unlike the other ETFs, or Amazon itself, this fund is not for the faint of heart, or those who believe in long-term investments. It’s for traders with a gambler’s spirit and a high risk tolerance. Use it around earnings releases, new product announcements… and maybe have a stiff drink handy.

Read More

2026-02-13 19:54