According to data provided by Statista, in 2017, retail e-commerce sales worldwide amounted to $2.3 trillion US dollars and e-retail revenues are projected to grow to $4.88 trillion in 2021. As such, Amplify ETFs seeks to take advantage of this global shift with the introduction of the Amplify International Online Retail ETF (NYSEArca: XBUY).
XBUY is an index-based ETF that seeks exposure to international companies expected to benefit from the increased adoption of e-commerce around the world. A complementary product to the firm’s flagship Online Retail ETF (Nasdaq: IBUY), companies in XBUY’s portfolio fall within the same three e-commerce business segments: marketplace, traditional retail and travel.
“Many of the fastest growing e-commerce markets reside outside of the U.S., primarily in developing countries where mobile devices are stoking demand,” said Christian Magoon, CEO of Amplify ETFs. “XBUY presents a compelling opportunity for investors to capitalize on this international growth, a segment where 80% of total online retail sales in 2018 were from countries outside the U.S.”
XBUY seeks investment results that generally correspond to the EQM International Ecommerce Index (XBUYXT). The rules-based index is comprised of a diverse group of non-U.S. companies that generate at least 90% of their revenue from online and virtual retail sales.
Per Statista, “the top 3 online stores’ revenue amounted to almost 100 billion US dollars in 2017. Online shopping is one of the most popular online activities worldwide but the usage varies by region – in 2016, an estimated 19 percent of all retail sales in China occurred via internet but in Japan the share was only 6.7 percent. Desktop PCs are still the most popular device for placing online shopping orders but mobile devices, especially smartphones, are catching up.”
Investors can learn more about XBUY at AmplifyETFs.com/XBUY
For more market trends, visit ETF Trends.