ETFs to Capture the Growing Preference for Online Shopping

“Given that fact and the recent rise in store closings, we predict that in the next year, 20% of brick-and-mortar retailers will begin implementing omnichannel strategies,” according to G2Crowd.

As the market environment shifts and changes, investors may also have the opportunity to capitalize on the growth potential of the e-commerce segment. For example, the Amplify Online Retail ETF (NasdaqGM: IBUY) is comprised of global companies that generate at least 70% of revenue from online or virtual sales.

With the rise of online retailers or e-commerce, many retail stores are seeing less foot traffic. The ProShares Decline of the Retail Store ETF (NYSEArca: EMTY) and ProShares Long Online/Short Stores ETF (NYSEArca: CLIX) both take a short position in brick-and-mortar retail stores to capitalize on weakness in traditional stores. Meanwhile, the ProShares Online Retail ETF (NYSEArca: ONLN) takes on a long position in online retailers.

As investors look for ways to capture growth in the emerging markets, some may look to a targeted consumer-sector EM play, such as the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ), which includes access to EM companies related to online retailers or the quickly expanding e-commerce industry. To be included within the ETF’s underlying index, companies must derive the majority of their profits from E-commerce or Internet activities and further includes search engines, online retail, social networking, online video, e-payments, online gaming and online travel.

For more information on the consumer sector, visit our consumer discretionary category.