Tom Lydon

Why ETFs Are The Best Way To Play The Google/Microsoft Rivalry

By Tom Lydon on July 10, 2009 | More Posts By Tom Lydon | Author's Website

Google and Microsoft have long been at each others’ throats in the fight for dominance. As investors look for a way to play the face-off, here’s a reason why exchange traded funds (ETFs) may be the way to go.

Although the official lifting of “beta” off of Google’s (GOOG) Gmail service means nothing to daily Gmail users, it gives the company the chance to get the paid version of Google Apps adopted inside big companies. Miguel Helft for The New York Times reports Google is trying to compete with rival offerings from other companies.

Corporate technology managers tend to shy away from beta products, and Google wants to remove any barriers to adoption that it can.

Meanwhile, Google has plans to tackle its biggest competitor, Microsoft (MSFT), with a system will be designed at first for low-cost laptops called netbooks, and the system will be based on its Chrome Web browser. Brian Womack for Bloomberg reports that this plan will up the competition on business applications such as word processing and spreadsheets. Windows, Microsoft’s flagship product, runs about 90% of the world’s personal computers.

Why are ETFs the way to go for investors who want to play this fight?

  • Can you predict who will emerge victorious? We sure can’t. Holding an ETF with both companies allows you to play both, and several tech ETFs have heavy weightings in both companies.
  • Tech ETFs are diversified enough that you not only get exposure to Google and Microsoft, but you get exposure to a host of other companies, too.
  • Having wide exposure across a sector benefits investors and allows them to capitalize while spreading risk and minimizing volatility.
  • iShares S&P North American Technology (IGM): up 19.9% year-to-date; Microsoft 9.4%; Google 5.8%

  • Technology Select Sector SPDR (XLK): up 13.6% year-to-date; Microsoft 9.3%; Google 5%

If you like this article please...
Subscribe by RSS Subscribe by Email Email This Post To A Friend Email This Post To A Friend

Leave A Comment :

Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.



HEADLINES
UPCOMING EVENTS
In 2 hrs: USD Wholesale Inventories (DEC)
In 2 hrs: USD IBD/TIPP Economic Optimism (FEB)
In 9 hrs: USD API U.S. Crude Oil Inventories (FEB 5)
In 9 hrs: USD API U.S. Gasoline Inventories (FEB 5)
In 9 hrs: NZD NZ Card Spending (MoM) (JAN)
Enter Your Email Address
Theme By: WordPress Theme Shop