Amazon has become the biggest company in the world by market capitalisation. We can’t invest directly into its shares on the ASX, but it is possible to get a slice of it via our Australian Stock Exchange.
By the end of Monday trade, the Amazon share price had risen 3.4% to a market capitalisation of around US$797 billion. This surpassed the Microsoft market capitalisation of US$784 billion.
The top spot used to belong to Apple, but volatile share markets and disappointing revenue guidance has seen the Apple share price fall by a third since the start of October 2018.
Amazon’s first claim to fame was as a leading internet seller of books. But now its retail site sells vast amounts of products, it has world-leading distribution centres, Amazon Prime is now a huge subscription business for free postage & entertainment, its Alexa-powered devices are selling fast, it has a very profitable data centre business (AWS) and Amazon Home Services could be the next big thing for the company.
So, how can we get a piece of the retail & technology behemoth?
Except for going to an international share broker and buying shares directly, the easiest way would be buying an exchange-traded fund (ETF) that owns it as part of the ETF’s holdings.
Some of the most widely-held ETFs include Vanguard US Total Market Shares Index ETF (ASX: VTS) and iShares S&P 500 ETF (ASX: IVV). However, the exposure to Amazon is quite small because of all the other holdings.
A less-diversified ETF such as BetaShares NASDAQ 100 ETF (ASX: NDQ) gives investors exposure to just the 100 largest businesses on the NASDAQ such as Alphabet, Netflix and so on. According to BetaShares, Amazon’s weighting is 10.1% of this ETF.
A final way of getting exposure to Amazon is by owning Goodman Group (ASX: GMG) shares, a property business, which has Amazon as its largest source of net income.
However, I’d only want to buy shares of Goodman Group at a substantial discount, I think there are ASX shares trading at a more attractive value today.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.