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Online Retail ETF (ONLN) Hits New 52-Week High

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Investors seeking momentum may have Proshares Online Retail ETF (ONLN - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of ONLN are up approximately 146.7% from their 52-week low of $28.50/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

ONLN in Focus

The underlying ProShares Online Retail Index is a specialized retail index that tracks retailers that principally sell online or through other non-store channels. The fund is heavy on Amazon. The fund charges investors 58 basis points in fee per year (see all Consumer Discretionary ETFs here).

Why the move?

After almost round-the-year coronavirus fear, Holiday Season is peeking into the calendars. It is time for consumers to stack up their shopping carts. Over the last few years, online sales have gained precedence. The coronavirus outbreak has raised the appeal of the space even more as it has less to do with human contact. 

Market research firm Forrester sees online retail jumping 18.5% this year and attaining 20.2% overall penetration in North America, as quoted on Forbes. Amazon’s Prime Day sales has also boosted the fund ONLN a lot.

More Gains Ahead?

The fund has a positive weighted alpha of 117.58. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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