For investors seeking momentum, Amplify Online Retail ETF (IBUY - Free Report) is probably on radar. The fund just hit a 52-week high, and is up roughly 32% from its 52-week low price of $39.27/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
IBUY in Focus
IBUY offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund is home to 47 stocks, each accounting for less than 4% of the assets. In terms of industrial exposure, traditional retail makes up for 59.2% share while marketplace and travel round off the next two spots. The ETF charges 65 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail corner of the broad consumer discretionary sector has been an area to watch lately given the strongest holiday season and an e-commerce bonanza. Total U.S. retail sales, excluding automobiles, rose 3.4% year over year between Nov 1 and Dec 24 per the MasterCard Advisors' SpendingPulse. E-commerce sales have surged 18.8% year over year and represent about 14.6% of total retail sales. This is primarily driven by 17% growth in apparel sales. Online electronics sales were also robust, rising 10.7%. Meanwhile, sales at department stores and jewelry rose 6.9% and 8.8%, respectively.
More Gains Ahead?
It seems that IBUY will remain strong given a higher weighted alpha of 25.70 and a lower risk as depicted by a 20-day volatility of 10.28%. As a result, there is definitely some promise left for investors who want to ride on this surging ETF a little further.
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