Retail ETFs Doing Better Than Expected

August 28, 2019

Online Retail ETFs

A new crop of ETFs has arrived to take advantage of the digital trend in retailing. The largest of the bunch is the $262 million Amplify Online Retail ETF (IBUY), which is up 19.2% year to date.

IBUY holds a global basket of retailers that derive at least 70% of their sales online. U.S. stocks make up about 85% of the fund, while international stocks make up the rest. Stocks are equal weighted in the portfolio.

Current top holdings include Stamps.com, Overstock.com, Carvana, Shutterfly and IAC/InterActive.

The ProShares Long Online/Short Stores ETF (CLIX) is next on the list of online-focused ETFs. It’s a $51 million fund that’s risen 21.5% year to date. CLIX goes above and beyond the strategy of simply buying shares of online retailers. It does that, but simultaneously overlays a 50% short position on shares of traditional brick-and-mortar retailers.

The current portfolio includes long positions on Amazon, Alibaba, Chewy, Groupon, Grubhub, eBay and Wayfair. It’s also short Office Depot, L Brands, Signet Jewelers and Sally Beauty Holdings, among others.

Finally, the ProShares Online Retail ETF (ONLN) is one of the newest entrants in the online retail ETF space. Since launching in July 2018, the fund has gathered $23 million in assets.

ONLN is a global, market-cap-weighted fund, with familiar top holdings like Amazon, Alibaba, Shutterfly, eBay and Chewy. The ETF is up 12.2% year to date.

Email Sumit Roy at [email protected] or follow him on Twitter sumitroy2

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