3 Amazon-Heavy ETFs to Buy on the Dip

Published: Friday, February 13, 2026 at 5:05 pm

Amazon Stock Slump Presents Opportunities for ETF Investors

Shares of Amazon have recently experienced a downturn, fueled by the company's announcement of a $200 billion investment in artificial intelligence (AI) this year. This news contributed to a significant intraday drop on February 6th, and by February 10th, Amazon shares were down 16.5% for the month. Over a five-year period ending February 10th, the stock has only increased by 25.3%, underperforming compared to the Nasdaq-100 and S&P 500.

However, despite these challenges, some analysts believe Amazon could rebound. Potential growth drivers include Amazon Web Services (AWS) and its advertising business, which saw a 22% year-over-year increase in the fourth quarter. For investors seeking exposure to a potential resurgence without directly investing in the stock, several exchange-traded funds (ETFs) offer alternative investment strategies.

The Vanguard Consumer Discretionary ETF (VCR) is highlighted as a cost-effective option, with Amazon comprising 21.2% of its holdings. The fund also includes a significant allocation to Tesla. Its annual expense ratio is 0.09%, significantly lower than the category average.

The VanEck Retail ETF (RTH) provides another avenue, with Amazon accounting for 17.2% of its portfolio. This ETF is slightly less concentrated, with Amazon, Walmart, and Costco Wholesale representing a significant portion of its holdings.

For investors with a higher risk tolerance, the Direxion Daily AMZN Bull 2x Shares ETF (AMZU) aims to deliver 200% of Amazon's daily performance. However, this leveraged ETF is designed for short-term trading and is not suitable for long-term investors.

BNN's Perspective: The recent dip in Amazon's stock presents a complex situation. While the company's AI investments raise concerns about short-term cash flow, the potential for long-term growth in areas like AWS and advertising remains. The ETFs mentioned offer diverse ways for investors to participate in a potential recovery, but investors should carefully consider their risk tolerance and investment goals before making any decisions.

Keywords: Amazon, AMZN, ETF, investment, stock, AI, AWS, Vanguard, VanEck, Direxion, retail, consumer discretionary, leveraged ETF, trading, market, Nasdaq-100, S&P 500, shares, performance, rebound

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