Amazon.com Inc.‘s (NASDAQ:AMZN) stock may be struggling as it heads into 2025, but ETFs have not abandoned it.
Shares of the e-commerce and cloud giant are up only 6% this year, significantly trailing the S&P 500’s 18% gain. Slowing growth at Amazon Web Services, mixed confidence around AI monetization, and layoffs in October have kept investor sentiment low.
While active investors debate whether Amazon is a bad investment or a potential comeback in 2026, ETFs have largely kept their position.
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ETFs Keep Amazon In The Portfolio
More than 200 U.S.-listed ETFs still hold Amazon, according to ETF holdings data by Marketxls. This shows how deeply ingrained the stock is across various passive and thematic strategies. In about a dozen of these funds, Amazon accounts for a significant portion, making performance changes difficult to ignore for investors.
Consumer discretionary ETFs are the clearest example. Amazon remains one of the largest holdings in sector funds that track U.S. retail and consumer spending, where its dominance in e-commerce and logistics gives it a major presence. For investors in those ETFs, it’s nearly impossible to bet on the consumer without including Amazon.
The Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS) allocates nearly 23% of its assets to Amazon, making the stock the single biggest driver of returns for the fund. The State Street Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) and the Vanguard Consumer Discretionary Index Fund ETF (NYSE:VCR) show similar concentration, each with Amazon accounting for more than 20% of assets.
Thematic products amplify that exposure further. The ProShares Online Retail ETF (NYSE:ONLN), which tracks companies benefiting from the shift to e-commerce, also carries Amazon at around a quarter of its portfolio. In these funds, Amazon’s muted performance in 2025 has had an outsized impact, effectively dragging broader consumer ETF returns along with it.
Mega-Cap And Magnificent Seven Exposure
Amazon’s influence is equally strong in mega-cap and tech-focused ETFs. Broad products like the Nasdaq-100 ETF and mega-cap growth funds continue to hold Amazon as a top position, even as Nvidia and Alphabet attract most of the AI excitement this year.
The Roundhill Magnificent Seven ETF (BATS:MAGS) illustrates this well. Designed to give equal exposure to the biggest names in tech, the fund still counts Amazon as a core holding. This means that investors buying into the Magnificent Seven are automatically betting on Amazon’s potential recovery alongside its higher-performing peers.
A Passive Bet On A 2026 Rebound
What stands out is not that ETFs are increasing their exposure to Amazon, but that they haven’t significantly reduced their exposure despite the stock’s poor performance. Index-tracking and rules-based ETFs adjust their holdings based on set criteria rather than emotions. As long as Amazon remains one of the largest and most liquid companies in the market, it stays in the mix.
This is important as Wall Street looks forward. Analysts at Evercore ISI and JPMorgan see a 30% to 50% upside related to a potential rebound in AWS growth, increased demand for AI chips, stronger advertising revenue, and improving free cash flow, according to Yahoo Finance.
For ETF investors, the message is clear: you might not be making a direct bet on Amazon, but you’re likely still holding it. If the long-anticipated recovery happens in 2026, ETFs will already be there for the ride.
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