Meta's Muse Paves Way for AI-Driven Growth in ETFs

Meta Platforms Inc's (NASDAQ:META) latest AI push is expanding beyond chatbots to create new opportunities for ETFs that hold significant stakes in the social-media giant. The company's Muse personal AI agent can now assist users with tasks such as product research, negotiation, and purchase completion.

This development gives Meta a potential second growth engine after advertising, according to T. Rowe Price portfolio manager Tony Wang, who said Meta has a 'distribution advantage'.

The First Trust Dow Jones Internet Index Fund (NYSE:FDN) is one of the most direct ETF plays on Meta's AI ambitions, with Meta accounting for about 10.5% of its portfolio and making it FDN's largest holding.

The fund owns over 40 internet and technology companies, including Amazon.com, Inc (NASDAQ:AMZN), Alphabet, Inc (NASDAQ:GOOGL), Salesforce Inc (NYSE:CRM), Oracle Corp (NYSE:ORCL), and Cisco Systems Inc (NASDAQ:CSCO), providing investors with exposure to companies that could benefit from growing digital commerce and AI infrastructure spending alongside Meta.

The Invesco AI and Next Gen Software ETF (NYSE:IGPT) offers a different angle, with Meta representing roughly 8.7% of the fund and other major holdings including Nvidia Corp (NASDAQ:NVDA), Alphabet, and Micron Technology Inc (NASDAQ:MU). This mix makes IGPT particularly interesting if agentic AI drives another wave of computing demand.

The Global X Social Media ETF (NASDAQ:SOCL) held about 10.6% in Meta and its other holdings include Reddit Inc (NYSE:RDDT), and Tencent, making it the most focused exposure to the broader social-media ecosystem.

The Communication Services Select Sector SPDR Fund (NYSE:XLC) is arguably the strongest addition, with Meta accounting for 19.3% of the ETF and making it its largest holding. Alphabet's two share classes together account for another 18.2%, giving XLC a cleaner way to play Meta's AI-agent push.