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Alphabet Earnings Loom Large: Do You Own The Right Funds?

· ETF Trends

Alphabet Earnings Loom Large: Do You Own The Right Funds?

A major milestone for the story of the stock market this year looms this evening. Alphabet (GOOGL) will report its earnings today after the bell. Reports suggest the firm will have big, positive news to share, so investors may have questions. For instance, do they own the right stocks, between GOOG and GOOGL? And what ETFs can help maximize positive Alphabet earnings?

Key Takeaways:

  • GOOG and GOOGL may be poised to spike when Alphabet earnings arrive after the bell Wednesday.
  • ETFs like GXPC and GOOX offer strong weights towards those stocks, one long and one shorter term and tactical.
  • While the stocks are different, their returns have mostly been the same, with about a 1% difference over three years.

GOOG and GOOGL operate mostly the same, except for the voting rights they confer. GOOG, Class C shares, offer no voting rights, while GOOGL, Class A shares, do. Otherwise, they mostly operate in the same way, with just about a 1% return difference over the last three years, per YCharts data.

What kind of ETFs, then, offer the best options to lean into GOOG and GOOGL for Alphabet earnings today? ETF Database’s ETF Stock Exposure tool can help find the funds with the largest weights to specific stocks.

See more: 3 Reasons to Use Active ETFs in Your Core Allocation

For example, the Global X PureCap MSCI Communications Services ETF (GXPC) has big allocations to both stocks. The strategy charges 15 basis point (bps) to track the MSCI USA Communication Services Index.

GOOGL sits at a remarkable 31.4% weight in the ETF’s holdings per ETF Database. GOOG, meanwhile, makes up nearly 25%. Together, more than half of the ETF’s assets are in Alphabet stocks.

GXPC can play a longer term role than just a tactical move for Alphabet earnings, of course. There are, however, tactical ETFs that specifically target Alphabet and its related stocks. The T-Rex 2X Long Alphabet Daily Target ETF (GOOX) charges a 105 bps-fee to offer 2x daily leveraged exposure to GOOG’s price movements.

Together, those strategies can help investors get more out of positive Alphabet earnings. Either way, making sure one has the desired amount of GOOG or GOOGL matters as the firm continues to play a leading role in the stock market.

For more news, information, and analysis, visit the Equity ETF Content Hub.