The Global X E-commerce ETF (NasdaqGM: EBIZ) is one of the newer members of the e-commerce exchange traded funds fray, but the fund continues delivering stellar performances as highlighted by a year-to-date of more than 34%.
The Global X E-commerce ETF tries to reflect the performance of the Solactive E-commerce Index, which include companies that are positioned to benefit from the increased adoption of e-commerce as a distribution model, including but not limited to companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and/or selling goods and services online, according to the fund’s prospectus.
Shopping and consumer trends are changing as more buyers rely on the convenience of online retailers to quickly and easily meet their discretionary needs. As the retail landscape changes, investors can also capitalize on the trend through exchange traded funds that target the e-commerce segment. Demographic trends are driving those shifts.
“While over 40% of the population is comfortable buying smaller-ticket items online, like clothes, shoes, and cosmetics, less than 15% of the population is comfortable buying big-ticket items like fine jewelry, groceries, or a home/apartment,” according to Global X research.
Millennials, Of Course
Not surprisingly, millennials are a driving force behind the move away from brick-and-mortar stores to more online shopping.
The millennial generation is classified as U.S. citizens born approximately between 1980 and 2000. Millennials account for one quarter of the nation’s population and are positioned to become a strong part of the workforce within the next decade.
“Much has been made about the different spending patterns of the Millennial generation versus older cohorts, particularly their affinity for technology,” according to Global X. “These unique preferences are apparent in our survey, as Millennials frequently indicated higher adoption, greater interest, and more comfort in new technologies than the next largest population group in the US, the Baby Boomers.”
Shopping and consumer trends are changing as more buyers rely on the convenience of online retailers to quickly and easily meet their discretionary needs. As the retail landscape changes, investors can also capitalize on the trend through exchange traded funds that target the e-commerce segment.
For more information on the ETF industry, visit our current affairs category.