Social distancing measures amid the Covid-19 pandemic have forced even the most ardent brick-and-mortar retail supporters towards online purchasing. As such, an online retail boom will only fan the flames for the hot Global X Funds – Global X E-commerce ETF (EBIZ).
One only has to look at the online retail giant Amazon to see how strong the online retail sector is—per a Reuters report, the company “reported Tuesday a surge in revenue during the second quarter of the year as the COVID-19 pandemic led people to boost their online purchases. The online retailing giant reported net sales of $88.9 billion compared to the $75.5 billion from the first three months of the year.”
“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” Amazon CEO and founder Jeff Bezos said in a statement.
On top of this, Amazon is accomplishing these sales figures while practicing safe social distancing amongst its employees. The report noted that Amazon “spent more than $4 billion on efforts to keep employees safe during the COVID-19 pandemic, including for purchasing personal protective equipment, increased cleaning of facilities, and a $500 million program to give bonuses to employees and delivery partners during the pandemic.”
Furthermore, while a number of sectors are having to lay off employees, Amazon created 175,000 new jobs since March.
“Third-party sales again grew faster this quarter than Amazon’s first-party sales,” Bezos noted, adding that “even in this unpredictable time, we injected significant money into the economy this quarter, investing over $9 billion in capital projects, including fulfillment, transportation, and AWS [Amazon Web Services].”
Speaking of Amazon, it’s one of the top 10 holdings in EBIZ as of July 30. The rest of the top 10 consists of a group of who’s who in the online retail sector, such as Shopify, Etsy, and eBay.
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.
For more market trends, visit ETF Trends.