E-commerce has seen robust demand in the wake of the pandemic. The country is witnessing an exponential increase in coronavirus infections with each passing day, right before the peak holiday shopping season. Hence, the holiday season will look different this year, as a major portion of shopping will continue to be on e-commerce platforms…
With October retail sales missing expectations and new lockdown restrictions taking effect in different parts of the country, retail’s near-term prospects look bleak. Shoppers are going to stay away from traditional brick-and-mortar stores, and consequently, more shopping will be done online this season than ever before. According to Adobe Analytics, US holiday online sales this season are expected to surge 33% year-over-year to a record $189 billion.
However, as the threat of a second-round of country-wide lockdown looms, stocks may see volatility, making it important for investors to invest accordingly. As ETFs provide a broad and diversified exposure at minimal operating costs, it could be a good idea to invest in ETFs.
The e-commerce momentum will continue for a long term and the holiday season will be a huge catalyst. Here are four ETFs that are well-positioned to soar as Americans gear up to splurge this holiday season: Amplify Online Retail ETF (IBUY), ProShares Online Retail ETF (ONLN), Global X E-commerce ETF (EBIZ), and SPDR S&P Internet ETF (XWEB).
Amplify Online Retail ETF (IBUY)
IBUY seeks to provide a cost-efficient way for investors to own a basket of companies with significant revenue from online and virtual retail sales. The fund’s portfolio offers convenient diversification across market capitalization, geography, and business focus. Portfolio holdings fall into three categories – traditional retail, marketplace and travel. The ETF seeks to correspond to the investment results of the EQM Online Retail Index, comprised of firms with at least 70% of their revenues from online sales.
IBUY has $1.15 billion in AUM and an expense ratio of 0.65%. The ETF has an MSCI ESG Fund Rating of BB based on a score of 3.03 out of 10. Although the fund does have international exposure, 76.8% of its assets are in the United States. The fund pays an annual dividend of $0.15, yielding 0.15%.
The fund currently holds 58 companies with a 63.6% exposure to the traditional retail segment, followed by 27.1% and 9.3% weightings to the marketplace and travel segments, respectively. The top 3 holdings of the fund are Qurate Retail, Inc. (QRTEA), Groupon, Inc. (GRPN), and Lands’ End, Inc. (LE), with the weights of 3.6%, 3%, and 3%, respectively.
IBUY has gained 99.4% year-to-date to close yesterday’s trading session at $102.42, after hitting an all-time high of $102.90. The fund has witnessed net inflows of $445.73 million in the past six months and is up more than 60% in the same period.
How does IBUY stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
B for Industry Rank
A for Overall POWR Rating.
It is ranked #9 out of 42 ETFs in the Consumer-Focused ETFs group.
ProShares Online Retail ETF (ONLN)
Online retail is soaring, thanks to the pandemic push, putting pressure on traditional stores and the changing retail landscape. ONLN lets investors tap into the potential growth of online retail by pinpointing retailers that principally sell online or through other non-store sales channels, such as mobile or app purchase. The ETF seeks to track the performance of the ProShares Online Retail Index, a modified market capitalization weighted index that puts emphasis on industry leaders, while also providing industry diversification.
ONLN has $724.8 million in AUM and an expense ratio of…
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