Back to top

Image: Bigstock

4 ETFs to Benefit From Cyber Week Sales

Read MoreHide Full Article

While shoppers are grabbing the Black Friday deals, retailers are preparing for Cyber Monday — the next big shopping event. In fact, Cyber Monday has grabbed maximum consumer attention in the recent past as "the preferred day for deals."

In fact, Cyber Week (Thanksgiving through Cyber Monday) as a whole continues to grow internationally, with more non-Americans participating in the shopping spree. Nearly 8 million more people than last year are expected to shop during the Thanksgiving Weekend this year, per NRF.

Consumers hit a new record for Thanksgiving Day spending at $5.29 billion, up 2.9% year over year, per Adobe Analytics data, with mobile shopping driving 55% of online sales. Cyber Monday will remain the year's biggest online shopping day at $11.2 billion, up 5.1% year over year. Black Friday has probably fetched $9 billion by the day's end, up just 1% year over year. Sales growth has declined over the years as retailers have been spreading out the deals and offering them almost throughout the holiday season.

Against this backdrop, below, we highlight a few ETFs that are great bets in the current scenario.

SPDR S&P Telecom ETF (XTL - Free Report)

Salesforce projected that global online sales grew 1% on Thanksgiving day to $31 billion, while in the U.S. sales were up 9% to $7.5 billion, quoted on Salesforce also said that 78% of sales traffic originated from mobile devices. Average order values were $105 globally and $120 for U.S. sales. Meanwhile, Adobe has predicted that Cyber Week will generate $34.8 billion in online spending this year, up 2.8% year over year. All these indicate the necessity and demand for telecommunication. XTL was up 3.3% last week and has gained 6.2% past month.

ETFMG Prime Mobile Payments ETF (IPAY - Free Report)

Retailers, of late, are offering customers flexibility in financing and shopping. Buy-Now-Pay-Later or Buy Online, Pick-Up in Store (BOPIS) are some of the offers that are in vogue currently. Plus, mobile shopping definitely needs mobile payments. All these factors make IPAY a lucrative bet.

VanEck Retail ETF (RTH - Free Report)

Walmart (WMT - Free Report) grabbed the top spot among shoppers searching online for Black Friday discounts, according to data from Captify, quoted on CNBC. Amazon took that spot last year. Searches for Black Friday discounts on Walmart skyrocketed 386% year over year, brushing aside the e-commerce behemoth Amazon. This year, the world’s largest e-commerce company ranked fourth, behind Target (TGT - Free Report) , and Kohl’s (KSS - Free Report) , respectively, per the source. Wal-Mart takes 8% of the fund RTH and Target takes 4%.

Amplify Online Retail ETF (IBUY - Free Report)

Since online sales have been predominant in this important time period, a mention of an e-commerce ETF is must.  The fund tracks the EQM Online Retail Index, which is a globally-diverse basket of publicly traded companies that obtain 70% or more revenues from online or virtual sales. No stock accounts for more than 2% of the fund.


Published in