Tune Into These Two ETFs For Netflix Access

Wednesday is just another day at the office for Netflix, Inc. (NASDAQ:NFLX). The stock was up more than 2 percent ($124.23) at time of writing after earlier touching an all-time high. Analysts keep fawning over the stock.

Earlier Wednesday, BTIG Research's Rich Greenfield said the absolute right move is to buy Netflix calling the company the future of television.

Guggenheim analyst Michael Morris initiated a coverage on the stock this week with a Buy rating and a $160 price target.

Ongoing ebullience surrounding Netflix, which now has a market cap of nearly $53 billion, should prove to be good news for several exchange traded funds, but two really standout as legitimate Netflix plays.

Tech ETF

Start with the SPDR Morgan Stanley Technology ETF (NYSE:MTK). The $434.3 million MTK is one of a small number of ETFs that feature Netflix as its largest holding. In fact, MTK has one of the largest weights to Netflix of any ETF as the fund entered trading Wednesday with a 6.6 percent weight to the stock, nearly 200 basis points more than it devotes to Amazon.com, Inc.(NASDAQ:AMZN), its second-largest holding.

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As noted last week in a hidden gem assessment of MTK, the ETF has advantages beyond its healthy combined Netflix/Amazon exposure. MTK is home to some of the most cash-rich companies in Corporate America. Based on end-of-2014 stockpiles, four of the five most cash-rich U.S. companies are current MTK holdings.

There are incremental signs investors are awakening to the MTK story as the ETF has added about $4 million in new assets since our July 27 review of the fund.

Cloud ETF?

The First Trust ISE Cloud Computing Index Fund (NASDAQ:SKYY) is another credible ETF avenue to Netflix. Like MTK, SKYY features Netflix as its largest holding, but in the case of the cloud fund, its Netflix is 4.5 percent.

Up 8.6 percent year-to-date, SKYY is one of about 30 ETFs that to this point in Wednesday's session have hit 52-week highs. SKYY's liberal requirements for its constituents have allowed the ETF to prosper. For example, the ETF can hold Non Pure Play Cloud Computing Companies: Companies that focus outside the cloud computing space but provide goods and services in support of the cloud computing space, according to First Trust.

Said another way, Netflix, Amazonand Facebook Inc (NASDAQ:FB) are not the purest cloud companies out there, but they are growing cloud players and that is enough for that trio to combine for 13 percent of SKYY's weight.

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