Oracle (ORCL) shares fell 2.5% Tuesday following a report that raised concerns about the profitability of its AI infrastructure business. However, Mizuho and Stifel analysts view this dip as a buying opportunity. Both firms expect Oracle’s margins to improve as its GPU-powered cloud segment scales. Thus, this might be the right time to consider investing in ORCL stock, especially through ETFs that offer diversified exposure without the risk of holding the stock directly.
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Investors seeking exposure to ORCL stock may consider the Pacer Data and Digital Revolution ETF (TRFK) and the iShares Expanded Tech-Software Sector ETF (IGV). Let’s take a deeper look at these two ETFs.
Pacer Data and Digital Revolution ETF
The TRFK ETF provides exposure to companies driving the global data and digital transformation. It tracks an index of globally listed stocks and depositary receipts of companies leading the digital revolution. Importantly, ORCL accounts for 10.29% of TRFK’s total holdings.
Some of the top holdings in the TRFK ETF include Broadcom (AVGO), Nvidia (NVDA), and AMD (AMD). Overall, the ETF has $211.85 million in assets under management (AUM) and an expense ratio of 0.49%. Over the past six months, the TRFK ETF has generated a return of 78.91%.
On TipRanks, TRFK has a Moderate Buy consensus rating based on 62 Buys and 22 Holds assigned in the last three months. At $75.63, the average TRFK ETF price target implies 9.19% upside potential.
iShares Expanded Tech-Software Sector ETF
The IGV ETF invests in U.S. software and services companies, aiming for growth and income generation. It allows investors to tap into the growth of cloud computing, cybersecurity, enterprise software, and digital platforms. Oracle stock constitutes 7.2% of the ETF’s holdings.
Apart from ORCL, some of the top stocks in the IGV ETF are Palantir (PLTR), Microsoft (MSFT), and Salesforce (CRM). Overall, the ETF has $9.19 billion in AUM. Also, it has an expense ratio of 0.39%. The IGV ETF has returned 43.3% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 114 stocks held, 92 have Buy ratings, 21 have Hold ratings, and one has a Sell rating. At $134.28, the average IGV ETF price target implies a 17.41% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to ORCL, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider IGV and TRFK, as these ETFs offer exposure to Oracle stock.