Just over two years after coming to market, the Amplify Online Retail ETF (NasdaqGM: IBUY) continues proving it is a successful avenue for investors to tap the new wave of retailing. Earlier this week, Amplify ETFs said IBUY topped $500 million in assets under management.
“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.
An Impressive Run for ‘IBUY’
IBUY’s ascent to $500 million in assets has happened in rapid fashion. In February, the ETF topped $200 million in AUM for the first time before doubling to $400 million in June.
Online retail sales continue to gain ground over traditional retailers, rising over 2000% since 1999. The amount of online buyers around the world estimated to increase 57% from 2014 to 2019; Global online retail sales $1.5 trillion in 2015, expected to rise to $4.1 trillion in 2020.
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IBUY’s index equally weights its holdings so neither the fund nor the benchmark are dominated by a stock like Amazon.com Inc. (NASDAQ: AMZN). In fact, Amazon, the largest e-commerce company, currently is not a top 10 holding in IBUY.
“The fund has returned 44.78% in the past year, and a cumulative return of 104.77% since inception as of 6/30/2018,” according to a statement from Amplify.
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