4 ETFs For Alphabet's Ascent Into The Four Comma Club

Google parent Alphabet (NASDAQ: GOOG, GOOGL) joined rivals Apple (AAPL) and Microsoft (MSFT) in the prestigious $1 trillion market value club on Friday, aka “The Four Comma Club.”

This is the first time the internet search giant has joined the $1 trillion pantheon and that's good news not only for investors in the stock but for those holding some of the nearly 170 exchange-traded funds that own the stock.

“Alphabet’s shares are among a small group of stocks found in the top holdings of both mutual funds and hedge funds, two types of institutions whose investing styles tend to be markedly different, a Goldman Sachs analysis showed,” reports Reuters.

Some well-known ETFs are also big Alphabet holders. Let's have a look at a few here.

Fidelity MSCI Communication Services Index ETF (FCOM)

By less than 20 basis points over the ETF with the second-largest Alphabet stake, the Fidelity MSCI Communication Services Index ETF (FCOM) leads the way with an 11.77% weight to the stock. That percentage jumps to around 23% when accounting for both the “A” and “C” share classes, something that FCOM and rival cap-weighted communication services ETFs do with Alphabet stock.

Another perk of FCOM is that with its annual fee of 0.084% per year, or $8.40 on a $10,000 stake, it's the cheapest ETF tracking this sector. 5G deployment is another reason to consider FCOM this year.

“Many of the bellwether companies in the communication services sector gave power to 4G, and others showed us truly world-changing use cases for mobile broadband. I believe the same will be true of 5G,” said Fidelity in a recent note. “From a consumer standpoint, 5G will be dramatically faster but less of an improvement over the last generational shift, which introduced mobile broadband to the world. So, what is revolutionary about 5G? The answer lies with the proliferation of connected devices, appliances, systems, and more—also known as the internet of things—and where that collected data can take us.”

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