ABCDETF: Three Ways To Play Google's Alphabet Metamorphosis

Shares of Google Inc(NASDAQ:GOOG) (NASDAQ:GOOGL) surged 6.2 percent in Monday's after-hours session after the company announced a reorganization that will see the company separate its highly profitable Internet search and advertising businesses from less mature assets, including smart thermostats and self-driving cars.

As a result of the new corporate structure, Google will become part of a technology conglomerate of sorts known as Alphabet. Google CEO and co-founder Larry Page will be Alphabet's CEO. The company will retain its dual Nasdaq listings, where it trades under the tickers GOOG and GOOGL.

"I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President," Page wrote in the company's official blog. "What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead.

The company's reorganization also means Alphabet will own all of Google's capital stock. Alphabet will oversee Google and a collection of other companies, including Google X, Calico, Life Sciences, Ventures and Capital.

Judging by Google's after-hours and pre-market performance, Wall Street likes the Alphabet idea and that could translate to some upside for Google, er, Alphabet-heavy exchange traded funds.

ABCDETF

Nearly 50 ETFs hold shares of the company soon to be known as Alphabet, but it is Internet ETFs where Google/Alphabet holds truly dominant positions. Start with the First Trust Dow Jones Internet Index Fund (NYSE:FDN).

Google's class A and class C shares combine for over 11.1 percent of FDN's weight, in effect making Google the ETF's largest holding, though Amazon.com, Inc. (NASDAQ:AMZN), Facebook Inc(NASDAQ:FB) and Priceline.com Inc. (NASDAQ:PCLN) eachcommand larger portions of FDN's weight than either Google's class A or class C shares on an individual basis.

FDN's primary rival, the PowerShares NASDAQ Internet Portfolio (NASDAQ:PNQI), features Google as its second-largest holding at a weight of 9.6 percent. PNQI has lagged FDN this year due in part to the latter's exposure to some Chinese Internet names.

Investors have added almost $1.1 billion to FDN this year while pulling $73.5 million from PNQI. Another Alphabet ETF to consider is the SPDR Morgan Stanley Technology ETF (NYSE:MTK).

The SPDR Morgan Stanley Technology ETF allocates a combined 6.7 percent of its weight to Google class A and class C shares, putting the stocks in a near tie with Netflix, Inc. (NASDAQ:NFLX) for the honor of being MTK's largest holding.

MTK has added $10.3 million in assets since we highlighted the ETF on July 27. Up 5.7 percent year-to-date, MTK has offered better than double the returns of the S&P 500.