The Amplify Online Retail ETF (NasdaqGM: IBUY) is fast-approaching its second anniversary and over those almost two years on the market, IBUY has become a hit with investors.
IBUY “has surpassed $200 million in assets under management as it continues to capitalize on the worldwide growth of online retail sales. The fund has returned 58.31% in the past year, and a cumulative return of 78.40%* since inception as of 1/31/2018,” according to a statement from Chicago-based Amplify ETFs.
As of Feb. 16th, IBUY had $217.2 million in assets under management. The ETF debuted in April 2016. IBUY provides exposure to many familiar online names, such as WayFair Inc (NYSE: W), Etsy (NasdaqGS: ETSY), FTD Companies (NasdaqGS: FTD), Overstock Com Inc (NasdaqGS: OSTK) and Priceline (NasdaqGS: PCLN). The ETF also features exposure to venerable names, such as Amazon.com Inc. (NasdaqGS:AMZN) and Netflix, Inc. (NasdaqGS: NFLX).
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.
“Online retail sales only constitute 9% of total U.S. sales, and we believe e-commerce is a trend that will gain significant momentum well into the future,” said Christian Magoon, founder and CEO of Amplify ETFs. “IBUY presents a compelling opportunity for investors to capitalize on this robust growth potential within their traditional brick-and-mortar consumer discretionary and retail allocation.”
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.
“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 the statement.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.