Alphabet makes up of 5.02% of the John Hancock Multifactor Technology ETF (JHMT) portfolio, lower than the Calamos Focus Growth ETF, but it also offers a significantly lower expense ratio, at just 0.50%.
Even though the phone and the other hardware products are not likely to generate significant revenue, Android is an important part of Google's search ecosystem; what's more, it's likely to help build brand cachet.
"I think it's basically a call option," Bailey noted, saying investors are not counting on much right away from the yet-to-be announced devices. "If these devices work, it'll help upside, but we're not anticipating any meaningful near-term revenue growth from these businesses."
PowerShares NASDAQ Internet Portfolio ETF
PowerShares NASDAQ Internet Portfolio ETF (PNQI) is slightly different from the other two listed in that it owns the Class C shares with the GOOG ticker, which have different voting rights than the Class A GOOGL shares.
Despite that slight difference, Alphabet makes up 7.85% of the fund, one which has an expense ratio of 0.60%.It gives you slightly more exposure to Alphabet's search business, as well as its burgeoning cloud business, one which R.W. Baird analyst Colin Sebastian is positive on, following Google's acquisition of Apigee ( APIC) in early September.
"Google already manages one of the largest networks of applications in the world (i.e. Chrome, Maps, YouTube, Gmail), and adding Apigee's technology to its Cloud Platform provides Google with a more compelling value proposition to prospective customers," Sebastian wrote in a note to clients. "As more companies look to move IT to the cloud given the cost/operational advantages, we believe a robust API management platform can be a differentiating feature for Google's Cloud offering, particularly given the secular trends in mobile apps."