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Three Tech ETFs Rocked by Google's Earnings Miss

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Roughly 125 ETFs have Google as a component, accounting for nearly 4% of the stock's total outstanding shares.

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Given this, we have highlighted three of the biggest holders of Google stock in ETF form and how they have held up in light of the search giant's terrible earnings report and uncertain outlook for the near term. These funds could either be tech products to stay away from for those who believe Google's troubles are just beginning, or products to cycle into for those who are cautiously optimistic over Google's longer-term health:

iShares Dow Jones US Technology ETF (NYSEARCA:IYW)
This ETF tracks the Dow Jones US Technology Index (INDEXDJX:DJUSTC) holding roughly 145 stocks in its basket. Of those firms, Google takes the fourth spot, making up roughly 8% of assets.

Following the announcement, the fund finished the day down about 1.8% on volume that was roughly two times normal. Still, the ETF is up over 12% year-to-date, although it has fallen by over 7% in the trailing one month period.

PowerShares NASDAQ Internet Portfolio (NASDAQ:PNQI)
This fund follows the NASDAQ Internet Index (INDEXNASDAQ:QNET), a benchmark of firms that trade on the Nasdaq and are in the broad internet industry. Unsurprisingly, Google takes the top spot in this fund, accounting for roughly 8.5% of assets.

Given this, some investors may be surprised to read that the fund lost just 1.5% on the day and that volume in the fund was just barely above historical averages. Over the past month, this fund has done much better than IYW, falling by just 2.5%, while it has also outperformed on a year-to-date basis, adding over 15% in the period.

First Trust Dow Jones Internet Index (FDN)
Another big tech ETF is FDN which tracks internet firms based on the Dow Jones Internet Index (INDEXDJX:DJINET), a benchmark that holds about 40 securities in total. Much like its PowerShares counterpart, Google gets the top spot although in this fund that means a 10.8% allocation, by far the most in the ETF world.

In terms of performance, FDN slumped by roughly 1.6% on the day on volume that was roughly double the historical average. Longer term, it is in line with the others on the list, adding 12.6% in the year-to-date time frame, while it has lost about 3.6% in the trailing one month period.

Editor's Note: For more from Zacks.com, click here.
No positions in stocks mentioned.
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