Lydon said the biggest retail ETF, SPDR S&P Retail ETF (NYSEArca: XRT), has declined this year as big box stores continue to suffer as online sales keep increasing.
However, investors can look to ETFs that invest in online shopping, such as 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.
“If you look at Amplify IBUY, that’s up almost 30%,” Lydon said. “You are going to continue to see these trends continue. As you look at the holiday season, and as I look at it, I’m already going online and looking for deals as opposed to having to trudge through stores that are somewhat packed and may not have what I’m looking for.”
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