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Disruptive ETFs to Buy: Blockchain and Online Retail

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  • (0:30) - Why You Should Be Investing In The Blockchain Technology
  • (4:05) - Overview of BLOK: Actively Managed ETF
  • (8:15) - How Does BLOK Manage Risk?
  • (10:20) - Online Retail Growth Trends: IBUY
  • (18:00) - Weighting and Holdings For IBUY
  • (22:15) - Takeaways on IBUY and BLOK: Podcast@Zacks.com

In this episode of ETF Spotlight, I talked with Christian Magoon, Founder & CEO of Amplify ETFs. Earlier this year, they launched the Amplify Transformational Data Sharing ETF BLOK, focused on blockchain companies.

Christian talked about the blockchain technology and how it is transforming the way data is stored and shared. Blockchain technology addresses many concerns related to privacy and security of data and that’s why many large companies are already using this technology in a big way.

BLOK is an actively managed ETF that invests in companies involved in the development and utilization of blockchain technologies. Christian highlighted the importance of active management in this rapidly evolving space.

We know that some small companies have tried to capitalize on the blockchain hype by adding blockchain to their names. The BLOK management team ensures that such fly-by-night blockchain companies are not included in the ETF.

Amplify also has an Online Retail ETF IBUY. While online retail is a global growth story, the US is not a leader in the space. In fact, less than 10% of all U.S. retail sales happen online.

From 2016 to 2021, online buyers around the world are expected to increase by 53%, suggesting that there is plenty of room to grow in this space.

IBUY has gained over 80% in its first two years, whereas the broader SPDR Retail ETF XRT, which has a lot of exposure to brick and mortar companies, returned less than 1% during the same time frame.

IBUY is an equal weighted ETF. Instead of an outsized exposure to Amazon (AMZN - Free Report) , the ETF provides diversified exposure to many other high-growth names, besides Amazon. In fact,14 constituents of the ETF outperformed Amazon last year.

Christian highlighted how companies are selected for inclusion in the ETF. Please listen to the podcast to learn about these two disruptive growth trends and why investors need to take a look at these ETFs.

To learn more about these ETFs, please visit AmplifyETFs

Please see Blockchain ETFs: What Investors Need to know if you want to compare the four blockchain ETFs.

And please visit the ETF section of Zacks.Com for more information on this ETF and other ETFs.

Make sure to tune in for our next podcast. If you have any comments or question, please email podcast@zacks.com

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