Take Advantage of Opportunities in Ecommerce in Today's Market

The benefits of eCommerce don’t just lend themselves to developed markets, but all markets around the globe are forcing to adapt amid the coronavirus pandemic. This puts exchange-traded fund (ETF) investors at an advantage to capitalize on eCommerce opportunities in certain funds.

“COVID-19 has certainly made an impact on eCommerce over the past couple of weeks now that isolation and social distancing measures have been put in place,” a Search Engine Journal report said. “Workers in many infected countries have been asked to work from home, countries including the UK, Italy, and France have been placed under lockdown and schools have been shut down. Unsurprisingly, many stores have since taken the decision out of consumers’ hands by shutting up shop, forcing traditional consumers to adopt eCommerce as an alternative.”

As more consumers are looking online to purchase goods and services, various ETFs are poised to take advantage like the Goldman Sachs Motif New Age Consumer ETF (GBUY). The fund holds familiar names like Amazon and China powerhouses like Alibaba Group.

GBUY seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Motif New Age Consumer Index. The fund seeks to achieve its investment objective by investing at least 80% of its assets in securities included in its underlying index.

The index is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going structural shifts in the consumer market due to changes in demographics, technology and preferences (the “New Age Consumer Theme”).

The index seeks to “track bespoke indices created by Motif, an industry leader in applying data science and automation to thematic investing. Motif analyzes traditional and alternative data and weights companies by a function of ‘thematic beta’ to provide precise exposure to theme,” according to the Goldman Sachs website.

GBUY Chart

GBUY data by YCharts

A couple of other funds to look at:

  1. ProShares Online Retail ETF (NYSEArca: ONLN): seeks investment results, before fees and expenses, that track the performance of the ProShares Online Retail Index. The index tracks retailers that principally sell online or through other non-store channels. The index uses a modified market-capitalization weighted approach, is rebalanced monthly and is reconstituted annually.
  2. KraneShares CSI China Internet Fund (NasdaqGM: KWEB): KWEB tracks a portfolio of Chinese internet and internet-related companies. The portfolio includes Chinese internet companies that provide similar services as Google, Facebook, Twitter, eBay and Amazon.

For more market trends, visit ETF Trends.