Not All Brick-and-Mortar Retail ETFs Are Struggling

Shares of some traditional brick-and-mortar retailers are rebounding this year. For example, the SPDR S&P Retail ETF (NYSEArca: XRT) is up nearly 9% year-to-date.

XRT features exposure to the following corners of the retail industry: Apparel Retail, Automotive Retail, Computer & Electronic Retail, Department Stores, Drug Retail, Food Retailers, General Merchandise Stores, Hypermarkets & Super Centers, Internet & Direct Marketing Retail, and Specialty Stores, according to State Street.

Still, that pales in comparison to the 21% gained by the Amplify Online Retail ETF (NasdaqGM: IBUY), which is comprised of global companies that generate at least 70% of revenue from online or virtual sales.

“IBUY divides online retailers into three broad categories. The majority of the fund consists of traditional retailers like Lands’ End that use the web to sell their own products directly to consumers,” reports Gerrard Cowan for the Wall Street Journal.

IBUY History And The Future

“IBUY began trading on April 20, 2016 and seeks to replicate the price performance of the EQM Online Retail Index (IBUYXT). The rules-based index tracks a globally diverse basket of companies that fall into three online retail categories — marketplace, travel and merchants — all of which must generate 70% of revenue from online or virtual sales,” according to Amplify ETFs.

The ETF features a mix of large-, mid- and small-cap stocks though large- and mid-cap names combine for 81% of its weight. Regardless of market capitalization, data suggest online retail is booming and will continue doing so in the years ahead.