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Online Holiday Sales Hit Record High: 5 ETFs to Tap
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Online holiday sales hit a record high buoyed by heavy discounts, which persuaded shoppers to spend on everything from toys to electronics amid the rising inflation environment.
Investors seeking to tap the booming online sales trend could consider e-commerce ETFs like Amplify Online Retail ETF (IBUY - Free Report) , Online Retail ETF (ONLN - Free Report) , Global X E-commerce ETF (EBIZ - Free Report) , First Trust Dow Jones Internet Index (FDN - Free Report) and Invesco NASDAQ Internet ETF (PNQI - Free Report) . Any of these could be compelling picks to play the trend.
Online sales rose 3.5% year over year to $211.7 billion during the period between Nov 1 and Dec. 31, according to new data released by Adobe Analytics. The five days between Thanksgiving and Cyber Monday were the major driver, providing a boost to sales. Online sales during Cyber Week, the five-day period from Thanksgiving to Cyber Monday, reached $35.3 billion, up 4% from 2021 (read: Consumer Confidence Rebounds in December: ETFs to Buy).
Discounts hit record-high levels in the holiday season, as retailers cleared excess inventory before the end of the fiscal year. Discounts were heavy in categories like toys, electronics, computers, apparel, televisions, appliances, sporting goods and furniture. Toy discounts peaked at 34% off the listed price during the holiday season, up from 19% in the year-ago period. Electronics discounts peaked at 25%, up from 8% in the year-ago period. Apparel peaked at 19%, up from 13% a year ago. Computers, TVs, appliances and sporting goods were also more promotional, per Adobe.
Amplify Online Retail ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. IBUY holds 58 stocks in its basket, with none accounting for more than 3% of assets. Amplify Online Retail ETF has the largest allocation in the marketplace and traditional retail with 45% and 44%, share, respectively (read: Retail ETFs to Tap on Robust Holiday Sales).
Amplify Online Retail ETF has attracted $198.8 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 31,000 shares.
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 25 stocks in its basket. ONLN is highly concentrated on the top two firms, while the other firms hold no more than 6.5% of the assets. American firms make up 69.6% of the portfolio, while Chinese firms account for 21.2% share.
ProShares Online Retail ETF has accumulated $123.9 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 64,000 shares.
Global X E-commerce ETF invests 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 related software and services, and/or selling goods and services online. It follows the Solactive E-commerce Index, holding 42 stocks in its basket (read: 5 ETFs to Bet On for This Holiday Season).
Global X E-commerce ETF has accumulated $47.5 million in its asset base and charges 50 bps in annual fees. The ETF sees an average daily volume of 12,000 shares.
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
First Trust Dow Jones Internet Index Fund follows the Dow Jones Internet Composite Index, giving investors exposure to the broad Internet industry. It holds about 42 stocks in its basket, with each accounting for less than 9% share. Other firms account for no more than 5.52% share.
First Trust Dow Jones Internet Index Fund is the most popular and liquid ETFs in the broad technology space, with AUM of $3.6 billion and an average daily volume of around 518,000 shares. FDN charges 51 bps in fees per year and has a Zacks ETF Rank #2 (Buy).
Invesco NASDAQ Internet ETF follows the Nasdaq CTA Internet Index, which measures the performance of companies engaged in Internet-related businesses listed on the New York Stock Exchange, NYSE American, Cboe Exchange or The Nasdaq Stock Market. The product holds 81 stocks in its basket, with double-digit exposure each in software, Internet & direct marketing retail and interactive media & services.
Invesco NASDAQ Internet ETF has amassed $443.2 million in its asset base and charges 60 bps in fees per year. The fund trades in a light volume of 27,000 shares and has a Zacks ETF Rank #1 (Strong Buy).
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Online Holiday Sales Hit Record High: 5 ETFs to Tap
Online holiday sales hit a record high buoyed by heavy discounts, which persuaded shoppers to spend on everything from toys to electronics amid the rising inflation environment.
Investors seeking to tap the booming online sales trend could consider e-commerce ETFs like Amplify Online Retail ETF (IBUY - Free Report) , Online Retail ETF (ONLN - Free Report) , Global X E-commerce ETF (EBIZ - Free Report) , First Trust Dow Jones Internet Index (FDN - Free Report) and Invesco NASDAQ Internet ETF (PNQI - Free Report) . Any of these could be compelling picks to play the trend.
Online sales rose 3.5% year over year to $211.7 billion during the period between Nov 1 and Dec. 31, according to new data released by Adobe Analytics. The five days between Thanksgiving and Cyber Monday were the major driver, providing a boost to sales. Online sales during Cyber Week, the five-day period from Thanksgiving to Cyber Monday, reached $35.3 billion, up 4% from 2021 (read: Consumer Confidence Rebounds in December: ETFs to Buy).
Discounts hit record-high levels in the holiday season, as retailers cleared excess inventory before the end of the fiscal year. Discounts were heavy in categories like toys, electronics, computers, apparel, televisions, appliances, sporting goods and furniture. Toy discounts peaked at 34% off the listed price during the holiday season, up from 19% in the year-ago period. Electronics discounts peaked at 25%, up from 8% in the year-ago period. Apparel peaked at 19%, up from 13% a year ago. Computers, TVs, appliances and sporting goods were also more promotional, per Adobe.
ETFs to Tap
Amplify Online Retail ETF (IBUY - Free Report)
Amplify Online Retail ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. IBUY holds 58 stocks in its basket, with none accounting for more than 3% of assets. Amplify Online Retail ETF has the largest allocation in the marketplace and traditional retail with 45% and 44%, share, respectively (read: Retail ETFs to Tap on Robust Holiday Sales).
Amplify Online Retail ETF has attracted $198.8 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 31,000 shares.
ProShares Online Retail ETF (ONLN - Free Report)
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 25 stocks in its basket. ONLN is highly concentrated on the top two firms, while the other firms hold no more than 6.5% of the assets. American firms make up 69.6% of the portfolio, while Chinese firms account for 21.2% share.
ProShares Online Retail ETF has accumulated $123.9 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 64,000 shares.
Global X E-commerce ETF (EBIZ - Free Report)
Global X E-commerce ETF invests 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 related software and services, and/or selling goods and services online. It follows the Solactive E-commerce Index, holding 42 stocks in its basket (read: 5 ETFs to Bet On for This Holiday Season).
Global X E-commerce ETF has accumulated $47.5 million in its asset base and charges 50 bps in annual fees. The ETF sees an average daily volume of 12,000 shares.
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
First Trust Dow Jones Internet Index Fund follows the Dow Jones Internet Composite Index, giving investors exposure to the broad Internet industry. It holds about 42 stocks in its basket, with each accounting for less than 9% share. Other firms account for no more than 5.52% share.
First Trust Dow Jones Internet Index Fund is the most popular and liquid ETFs in the broad technology space, with AUM of $3.6 billion and an average daily volume of around 518,000 shares. FDN charges 51 bps in fees per year and has a Zacks ETF Rank #2 (Buy).
Invesco NASDAQ Internet ETF (PNQI - Free Report)
Invesco NASDAQ Internet ETF follows the Nasdaq CTA Internet Index, which measures the performance of companies engaged in Internet-related businesses listed on the New York Stock Exchange, NYSE American, Cboe Exchange or The Nasdaq Stock Market. The product holds 81 stocks in its basket, with double-digit exposure each in software, Internet & direct marketing retail and interactive media & services.
Invesco NASDAQ Internet ETF has amassed $443.2 million in its asset base and charges 60 bps in fees per year. The fund trades in a light volume of 27,000 shares and has a Zacks ETF Rank #1 (Strong Buy).