5 ETFs to Ride META's Record-Winning Rally

Core Insights - Meta Platforms (META) has reached an all-time high stock price after a 20-day consecutive rise, with a year-to-date increase of 25.8% and a remarkable 600% rise from its 2022 lows, making it the top performer among the "Magnificent Seven" tech stocks this year [1] Investment Opportunities - Investors are encouraged to consider ETFs with significant allocations to Meta, including iShares Global Comm Services ETF (IXP), Fidelity MSCI Communication Services Index ETF (FCOM), Vanguard Communication Services ETF (VOX), Communication Services Select Sector SPDR Fund (XLC), and First Trust Dow Jones Internet Index Fund (FDN) [2] Factors Driving Outperformance - Meta plans to invest $60-$65 billion in AI infrastructure by 2025, aiming to develop a highly intelligent AI assistant that will reach over 1 billion users [2] - The company is also expanding into AI-powered humanoid robots through a new team in its Reality Labs division [2] - Discussions are underway for Meta to acquire South Korean chip startup FuriosaAI to enhance its AI hardware capabilities and reduce reliance on NVIDIA [3] - Meta's advertising business remains strong, ranking second globally in digital advertising revenues, just behind Alphabet [4] Analyst Sentiment - Wall Street analysts have a positive outlook on Meta, with an average recommendation score of 1.37 (on a scale of 1 to 5), where 83.33% of recommendations are Strong Buy [5] - The average price target for Meta is $738.08, with estimates ranging from $505.00 to $900.00 [5] Valuation - Meta is currently trading at 27.63X forward earnings, which is below the Zacks Internet-Software industry average of 29.86X, indicating it is one of the cheaper options among large tech stocks [6] ETF Details - iShares Global Comm Services ETF (IXP): Holds 66 stocks with Meta at 24.9% share, $439.3 million in assets, and an expense ratio of 0.41% [7] - Fidelity MSCI Communication Services Index ETF (FCOM): Contains 109 stocks with Meta at 24.7% share, $1.5 billion in assets, and charges 8 bps in fees [8] - Vanguard Communication Services ETF (VOX): Comprises 117 stocks with Meta at 22.6% share, $4.9 billion in assets, and charges 9 bps in fees [9] - Communication Services Select Sector SPDR Fund (XLC): Holds 22 stocks with Meta at 21.4% share, $22.4 billion in assets, and charges 8 bps in fees [10] - First Trust Dow Jones Internet Index Fund (FDN): Includes about 40 stocks with Meta at 11.3% share, $7.4 billion in assets, and charges 51 bps in fees [11]