Amazon has officially surpassed Walmart as the world’s largest retailer in terms of annual revenues, with $716.9 billion compared to Walmart’s $713.2 billion, driven by its high-margin technology ecosystem including Amazon Web Services and advertising business.

Investors are now looking at ETFs that hold Amazon and other retail and tech leaders to capitalize on this shift, offering exposure to both retail and technology sectors.

Amazon’s milestone is a testament to its financial engine fueled by retail, cloud, and ads, making it a bellwether for digital retail, cloud, and AI. The new status as the largest company by sales reinforces its position as an appealing investment prospect for investors seeking exposure to these secular themes.

While investors may be tempted to buy Amazon stock, ETFs provide a more diversified approach to capture the upside of Amazon’s newfound scale while spreading risk across other leading retailers, cloud players, and tech platforms, blunting company-specific volatility.

Some Amazon-heavy ETFs to consider include Global X PureCap MSCI Consumer Discretionary ETF, Vanguard Consumer Discretionary ETF, State Street Consumer Discretionary Select Sector SPDR ETF, ProShares Online Retail ETF, VanEck Retail ETF, and Invesco QQQ.

Investors may want to keep an eye on these ETFs as they offer exposure to companies affected by Amazon’s rise in the retail landscape, providing a way to capitalize on the structural trends that helped Amazon overtake Walmart in the first place.

Read more at Nasdaq: ETFs in Focus as Walmart Loses Its Largest Retailer Title to Amazon