The trend away from traditional department stores and apparel retailers to online shopping destinations should benefit the Amplify Online Retail ETF (NasdaqGM: IBUY), which debuted last year. IBUY, which is comprised of global companies that generate at least 70% of revenue from online or virtual sales, has been one of the best-performing retail ETFs since its inception.
IBUY provides exposure to many familiar online names, such as WayFair Inc (NYSE: W), Etsy (NasdaqGS: ETSY), FTD Companies (NasdaqGS: FTD), Overstock Com Inc (NasdaqGS: OSTK) and Priceline (NasdaqGS: PCLN).
“Retailers had been under pressure with the potential for a proposed tax plan by congressional Republicans to negatively impact the group. Such a plan would more heavily tax retailers that source their goods from abroad,” according to CNBC. “However, President Donald Trump said in a recent interview with The Wall Street Journal the tax plan appears “too complicated,” raising uncertainty about its prospects.”
Investors are displaying some enthusiasm for XRT’s rebound prospects as the ETF has added nearly $470 million in new assets since the start of this year.
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