Look for Opportunities in Online Retail Versus Brick-and-Mortar

Real estate mogul Sam Zell is forecasting the demise of brick-and-mortar real estate, which has only been fueled further by Covid-19. With a marked shift towards online retail, it will be survival of the fittest for retailers maintaining their brick-and-mortar presence.

“There is no question in my mind that retail is a falling knife, and we are for sure not at the bottom,” Zell told CNBC’s “Squawk Box” on Wednesday morning.

“We started this whole [pandemic]with more retail space per person than any other country in the world, by a multiple,” Zell said. “The change in retail is really just a reorganization of oversupply.”

“The pandemic has accelerated the amount of online retail, and I don’t think that’s ever going to change,” he added. “That’s going to require future retail real estate to be very different than it has [been]up until now.”

To take advantage of online retail, ETF investors can look at Global X Funds – Global X E-commerce ETF (EBIZ). EBIZ seeks to invest in companies positioned to benefit from the increased adoption of E-commerce as a distribution model, including companies whose principal business is in operating E-commerce platforms, providing E-commerce software and services, and/or selling goods and services online.

EBIZ offers investors:

  • High Growth Potential: EBIZ enables investors to access high growth potential through companies that are positioned to benefit from the increased adoption of E-commerce as a distribution model.
  • Unconstrained Approach: EBIZ’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging consumer theme.
  • ETF Efficiency: In a single trade, EBIZ delivers access to dozens of companies with high exposure to the E-commerce theme.

EBIZ Chart

EBIZ data by YCharts

More online shopping options:

  1. Amplify Online Retail ETF (NasdaqGM: IBUY): seeks investment results that generally correspond to the price and yield of the EQM Online Retail Index. The index seeks to measure the performance of global equity securities of publicly traded companies with significant revenue from the online retail business. The index methodology is designed to result in a portfolio that has the potential for capital appreciation.
  2. SPDR S&P Retail ETF (NYSEArca: XRT): seeks to provide investment results that correspond generally to the total return performance of an index derived from the retail segment of a U.S. total market composite index. The index represents the retail segment of the S&P Total Market Index (“S&P TMI”).
  3. ProShares Online Retail ETF (NYSEArca: ONLN): seeks investment results that track the performance of the ProShares Online Retail Index (the index). The index is designed to measure the performance of publicly traded companies that principally sell online or through other non-store sales channels, such as through mobile or app purchases, rather than through “brick and mortar” store locations.

For more market trends, visit ETF Trends.