The Whale of Retail: Investing in E-Commerce
The coronavirus pandemic has transformed the way we interact with the world, supporting a shift toward online shopping and e-commerce.
In the upcoming webcast, The Whale of Retail: Investing in E-Commerce, Christian Magoon, Founder and CEO, Amplify ETFs; and Jane Edmondson, Founder & CEO, EQM Indexes, will discuss how they believe the growing presence of e-commerce will continue to accelerate in the global markets.
Specifically, assets like the Amplify Online Retail ETF (NasdaqGM: IBUY), which tries to reflect the performance of the EQM Online Retail Index, can provide exposure to global equity securities of publicly traded companies with significant revenue from the online retail business. IBUY has been a popular thematic play that targets global companies that generate at least 70% of revenue from online or virtual sales. As the market environment shifts and changes, investors may also have the opportunity to capitalize on the growth potential of the e-commerce segment. The index methodology is designed to result in a portfolio that has the potential for capital appreciation.
Online retail sales continue to gain ground on traditional retail sales. In the U.S., online sales have grown 4,500% since 1999, according to Amplify. Looking ahead, U.S. e-commerce sales are expected to grow 13% in 2021, according to a Kiplinger report.
IBUY has an international counterpart, the Amplify International Online Retail ETF (NYSEArca: XBUY). XBUY tracks the EQM International Ecommerce Index, which takes on foreign companies or those outside the U.S. that are expected to benefit from the increased adoption of e-commerce around the world.
"While online retail has already disrupted the retail landscape in the U.S. and developed markets, it is still in the early days in many developing market economies, due primarily to the emergence of the middle-class consumer," according to an Amplify research note.
Financial advisors who are interested in learning more about investing in e-commerce can register for the Monday, June 14 webcast here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.