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ETFs to Benefit From a Record Surge in Online Prices
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E-commerce, the land of discounts especially during the holiday season, is witnessing price increases in the pandemic recovery era. This is especially true as online prices in November rose a record 3.5% year over year, marking the 18th consecutive month of increase.
Investors seeking to make a profit from this 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) , O’Shares Global Internet Giants ETF (OGIG - Free Report) and First Trust Dow Jones Internet Index Fund (FDN - Free Report) . Any of these could be compelling picks to play the trend.
The ongoing global supply chain bottlenecks and rising inflation has pushed the online prices for almost everything higher. Although the online prices dipped 2% from last month on holiday shopping discounts, November’s price growth represents the biggest annual gain since software company Adobe Inc. started tracking the digital economy in 2014. Roughly $1 of every $4 is spent online, according to Adobe.
Of the 18 categories tracked by Adobe, 11 saw price increases in November, led by apparel, which witnessed a 17.3% increase. This was followed by 15.5% in flowers, 6.9% in tools and home improvement, and 6.8% in sporting goods (read: Retail ETFs Decline as Thanksgiving Weekend Sales Drop).
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 79 stocks in its basket with none accounting for more than 2.1% of assets. Amplify Online Retail ETF has the largest allocation in traditional retail at 53.6% followed by 36.6% in the marketplace.
Amplify Online Retail ETF has attracted $704.1 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 71,000 shares.
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels, and then zeros in on companies that are reshaping the retail space. It tracks the ProShares Online Retail Index, holding 40 stocks in its basket. ONLN is highly concentrated on the top two firms while the other firms hold no more than 4.2% of assets. American firms make up three-fourth of the portfolio, while Chinese firms account for 17.4% share.
ProShares Online Retail ETF has accumulated $709.3 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 81,000 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 40 stocks in its basket.
O’Shares Global Internet Giants ETF invests in some of the largest global companies that derive most of their revenues from the Internet and e-commerce sectors that exhibit quality and growth potential by tracking the O’Shares Global Internet Giants Index. It holds a basket of 95 stocks and charges 48 bps in annual fees.
O’Shares Global Internet Giants ETF has been able to attract $522.5 million in its asset base and trades in an average daily volume of 64,000 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 41 stocks in its basket with a double-digit concentration on the top firm. Other firms account for no more than 7.2% share (read: Internet ETFs Looking Great Bets Amid Omicron Uncertainty).
First Trust Dow Jones Internet Index Fund is the most popular and liquid ETFs in the broad technology space with AUM of $10.2 billion and an average daily volume of around 221,000 shares. FDN charges 51 bps in fees per year and has a Zacks ETF Rank #2 (Buy).
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ETFs to Benefit From a Record Surge in Online Prices
E-commerce, the land of discounts especially during the holiday season, is witnessing price increases in the pandemic recovery era. This is especially true as online prices in November rose a record 3.5% year over year, marking the 18th consecutive month of increase.
Investors seeking to make a profit from this 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) , O’Shares Global Internet Giants ETF (OGIG - Free Report) and First Trust Dow Jones Internet Index Fund (FDN - Free Report) . Any of these could be compelling picks to play the trend.
The ongoing global supply chain bottlenecks and rising inflation has pushed the online prices for almost everything higher. Although the online prices dipped 2% from last month on holiday shopping discounts, November’s price growth represents the biggest annual gain since software company Adobe Inc. started tracking the digital economy in 2014. Roughly $1 of every $4 is spent online, according to Adobe.
Of the 18 categories tracked by Adobe, 11 saw price increases in November, led by apparel, which witnessed a 17.3% increase. This was followed by 15.5% in flowers, 6.9% in tools and home improvement, and 6.8% in sporting goods (read: Retail ETFs Decline as Thanksgiving Weekend Sales Drop).
Let’s now discuss the ETFs in detail below:
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 79 stocks in its basket with none accounting for more than 2.1% of assets. Amplify Online Retail ETF has the largest allocation in traditional retail at 53.6% followed by 36.6% in the marketplace.
Amplify Online Retail ETF has attracted $704.1 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 71,000 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 companies that are reshaping the retail space. It tracks the ProShares Online Retail Index, holding 40 stocks in its basket. ONLN is highly concentrated on the top two firms while the other firms hold no more than 4.2% of assets. American firms make up three-fourth of the portfolio, while Chinese firms account for 17.4% share.
ProShares Online Retail ETF has accumulated $709.3 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 81,000 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 40 stocks in its basket.
Global X E-commerce ETF has accumulated $179.8 million in its asset base and charges 50 bps in annual fees. The ETF sees an average daily volume of 19,000 shares (read: 5 ETFs to Buy This Holiday Season for Gift of Good Returns).
O’Shares Global Internet Giants ETF (OGIG - Free Report)
O’Shares Global Internet Giants ETF invests in some of the largest global companies that derive most of their revenues from the Internet and e-commerce sectors that exhibit quality and growth potential by tracking the O’Shares Global Internet Giants Index. It holds a basket of 95 stocks and charges 48 bps in annual fees.
O’Shares Global Internet Giants ETF has been able to attract $522.5 million in its asset base and trades in an average daily volume of 64,000 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 41 stocks in its basket with a double-digit concentration on the top firm. Other firms account for no more than 7.2% share (read: Internet ETFs Looking Great Bets Amid Omicron Uncertainty).
First Trust Dow Jones Internet Index Fund is the most popular and liquid ETFs in the broad technology space with AUM of $10.2 billion and an average daily volume of around 221,000 shares. FDN charges 51 bps in fees per year and has a Zacks ETF Rank #2 (Buy).