Triple-digit stock prices can limit the amount of exposure an investor would like when constructing a well-rounded portfolio. However, with exchange traded funds, investors can take on a basket of expensive, yet favorably positioned large-cap companies.
There are a number of ETFs that include triple-digit stock components. Benzinga's ETF Professor at Minyanville lists out five such ETFs that provide exposure to well-known large-cap stocks at a reasonable price:
- SPDR Technology Select Sector Fund ETF (NYSEARCA:XLK). The fund's top holding is Apple (NASDAQ:AAPL) at 17.8%, but it also holds International Business Machines (NYSE:IBM) at 8.22% and Google (NASDAQ:GOOG) at 5.3%.
- SPDR Financial Select Sector Fund ETF (NYSEARCA:XLF). XLF includes top financial names like Goldman Sachs (NYSE:GS) and Simon Property Group (NYSE:SPG) in its top ten holdings. BlackRock (NYSE:BLK) also makes up about 1% of the fund.
- Global X China Energy ETF (NYSEARCA:CHIE). This energy fund tracks China's energy producers, including the country's three largest oil companies, PetroChina (NYSE:PTR), Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO). These three companies make up almost a third of CHIE's overall portfolio.
- iShares S&P 500 Growth Index Fund ETF (NYSEARCA:IVW). The ETF offers exposure to over 30 companies that are trading in the triple-digit range, along with a handful of other securities that could trade in the low $100s on a good day.
- First Trust ISE Cloud Computing Index Fund ETF (NASDAQ:SKYY). SKYY tracks companies that are involved in the relatively new cloud computing tech industry. The fund holds nine triple-digit stocks, including familiar names like Netflix (NASDAQ:NFLX), Equinix (NASDAQ:EQIX), Apple, Google and Amazon (NASDAQ:AMZN).
Max Chen contributed to this article.