Investing in e-commerce is about more changes in consumer behavior; it may also represent a compelling alternative to consumer discretionary or technology investments. As a group, e-commerce companies tend to be digital natives, with technological infrastructure and business models designed to thrive in an increasingly online world.
In the upcoming webcast, Sectors Disrupted: Breaking E-commerce Out of the Box, Scott Helfstein, Executive Director, Thematic Investing, ProShares; Simeon Hyman, Head of Investment Strategy, Global Investment Strategist, ProShares; and Troy Goldstein, Executive Director, Head of National Accounts, ProShares, will discuss opportunities in e-commerce.
Investors can capture the increased popularity of e-commerce and the decline of traditional brick-and-mortar shops through ETFs. The ProShares Decline of the Retail Store ETF (NYSEArca: EMTY) and ProShares Long Online/Short Stores ETF (NYSEArca: CLIX) both take a short position in brick-and-mortar retail stores to capitalize on weakness in traditional stores. Meanwhile, the ProShares Online Retail ETF (NYSEArca: ONLN) takes on a long position in online retailers.
The ProShares Online Retail ETF tries to reflect the performance of the ProShares Online Retail Index, which includes companies that principally sell online or through other non-store channels, such as mobile or app purchases, rather than through brick-and-mortar store locations. Component holdings must be classified as an online retailer, an eCommerce retailer, or an internet or direct marketing retailer, according to standard industry classification systems.
The Decline of the Retail Store ETF provides daily short exposure or -1x to the Solactive-ProShares Bricks and Mortar Retail Store Index, which is comprised of traditional retailers and equally weights components. The fund holds companies that include department stores, supermarkets, and sellers of apparel, consumer electronics, and home improvement items.
Lastly, the Long Online/Short Stores ETF is a type of long-short strategy and the first ETF to track the potential growth of online companies while benefiting from the decline of bricks and mortar retailers. Specifically, CLIX reflects the ProShares Long Online/Short Stores Index, which combines a 100% long portfolio of online and non-traditional retailers with a 50% short position in bricks and mortar retailers.
Financial advisors who are interested in learning more about the e-commerce market can register for the Monday, May 10 webcast here.