Still, QQQ remains a viable way for investors to capture a slice of the e-commerce phenomenon.
“Retailers within the Nasdaq-100 Index have generated 174% higher growth rates for these three metrics than have retailers within the S&P 500 Index over the past three years. In turn, the market has rewarded this group of retailing stocks with solid year-to-date returns. The Nasdaq-100’s retail stocks have returned 41.9% through Nov. 24, while S&P 500 Index retailers have returned 24.3% over this same time period,” according to PowerShares.
Traditional retailers must contend with shoppers’ growing preference for online shopping. 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 is up nearly 40% year-to-date.
For more information on the consumer sector, visit our consumer discretionary category.
Tom Lydon’s clients own shares of QQQ.