Netflix Slump Puts These ETFs in the Spotlight After Weak Outlook

This article first appeared on GuruFocus.

Netflix (NASDAQ:NFLX) shares came under pressure on Friday after the streaming company issued a softer outlook despite reporting second-quarter results that topped earnings expectations, drawing attention to exchange-traded funds with sizable holdings in the stock.

Netflix exceeded analysts’ expectations for second-quarter GAAP earnings, but its guidance for the third quarter and full year fell short of some investor expectations, contributing to the stock’s decline.

The pullback is likely to affect several ETFs with meaningful exposure to Netflix. Funds with larger allocations to the streaming company could see their performance influenced if weakness in the stock persists, given Netflix’s weight in portfolios focused on technology, communication services and internet companies.

Among the ETFs with notable Netflix exposure are the AdvisorShares Gerber Kawasaki ETF (GK), Communication Services Select Sector SPDR Fund (XLC), First Trust Dow Jones Internet Index Fund (FDN), Vanguard Communication Services ETF (VOX), iShares Global Comm Services ETF (IXP) and Fidelity MSCI Communication Services Index ETF (FCOM).