How to buy Amazon stock with lesser money?

We know that Amazon stock is flying high recently.
Amazon is a good quality stock that expects to continue to rise in value.
This is a good investment that investors should consider.

However, with the share price about USD2000 per share, it may not be easy to take position in this stock if ones do not have sufficient capital to start with.

One alternative is to invest in ETF that has high exposure to Amazon.

One of the options is to buy ETF:
XLY, Consumer Discretionary Select Sector SPDR Fund

XLY tracks a market-cap-weighted index of consumer-discretionary stocks drawn from the S&P 500.

It holds 100% of US stocks.

XLY Portfolio Management

Expense Ratio                                0.13%

XLY Portfolio Data
Weighted Average Market Cap       $290.37B
Price / Earnings Ratio                     26.94
Price / Book Ratio                           8.04
Distribution Yield                            1.23%
Next Ex-Dividend Date                   03/23/20
Number of Holdings                       65

XLY Summary Data
Issuer                                                   State Street Global Advisors
Brand                                                   SPDR
Inception Date                                    12/16/98
Legal Structure                                   Open-Ended Fund
Expense Ratio                                     0.13%
Assets Under Management                 $15.03B
Average Daily $ Volume                    $530.48M
Average Spread (%)                           0.01%

PERFORMANCE
[as of 02/24/20]1 MTH3 MTHSYTD1 YEAR3 YRS5 YRS10 YRS

XLY-0.10%4.92%0.32%14.78%14.64%12.28%16.95%

XLY (NAV)-0.15%4.89%0.30%14.77%14.64%12.29%16.95%

It has about 25.60% of Amazon holding in its ETF:

• Amazon.com, Inc.25.60%
• Home Depot, Inc.10.81%
• McDonald's Corporation6.65%
• NIKE, Inc. Class B4.94%
• Starbucks Corporation4.13%
• Lowe's Companies, Inc.3.90%
• Booking Holdings Inc.3.10%
• TJX Companies Inc3.10%
• Target Corporation2.38%
• Ross Stores, Inc.1.82%

Total Top 10 Weighting66.44%

This will offer a cheaper way to gain exposure to Amazon.

By the way, it also has exposure to some other good brands like Home Depot, Mcdonald's, Nike,  and Starbucks.

Personally, I would like to gain some exposure to McDonald's and Starbucks, so I think this is a good ETF for me to consider adding.

I already owned Nike stock. This will help to add some extra positions.


In terms of sector exposure, it has 10 sectors exposure, which is making it quite diversified as well.
Top sector exposure is the diversified retail at 32.9% exposure.

• Diversified Retail32.92%
• Hotels & Entertainment Services25.00%
• Other Specialty Retailers22.24%
• Textiles & Apparel7.67%
• Automobiles & Auto Parts6.13%
• Homebuilding & Construction Supplies2.30%
• Household Goods1.28%
• Software & IT Services1.14%
• Aerospace & Defense0.58%
• Leisure Products0.55%

Since the outbreak of the coronavirus in Jan, XLY is now hitting the 150 MA.

I may consider adding some positions in this stock.





Over the past 10 years, Amazon stocks have soared over 1482%.

XLY has also increased by 336%. This is quite impressive given this bull run.






Since the end of 2018, we can see that Amazon and XLY has a strong correlation as well.






The correlation shows that it is higher than 0.5 since 2003.

For 2019 and beyond, the correlation is closer to 1.

Will you consider investing in Amazon or XLY?


Happy Investing! 😉


Reference:
https://www.etf.com/XLY
https://www.portfoliovisualizer.com/asset-correlations