Online Retail ETFs to Benefit from the Holiday Shopping Craze

The coronavirus pandemic has helped the e-commerce industry take a firm hold in the United States and around the world as people have stayed in and purchased all the essentials online. The trend is expected to continue into the next holiday season. According to Mastercard SpendingPulse, retail sales in the United States – excluding automobiles and gasoline – for the “75 Days of Christmas” which run from Oct. 11 to Dec. 24 – are expected to increase 6.8% year-on-year. other.

Along with the trend of digitization, the upcoming holiday season in the United States is expected to see a significant increase in online sales. Mastercard SpendingPulse predicts online sales to increase 7.5% during the “75 Days of Christmas” period. In fact, eMarketer predicts that revenue for the 2021 holiday season will increase 11.3% year-over-year to $ 206.88 billion, according to a Whiplash article.

The current wave of digitalization favors both e-commerce pureplays and traditional retailers, who are entering e-commerce to take advantage of the boom in online shopping. At the same time, merchants are moving towards a hybrid / omnichannel model so that customers can enjoy fast delivery, or pick up ordered items online (BOPIS, curbside pickup), at their convenience, and via apps. who organize personal buyers. The trend is a boon for a number of retail players, motivating them to develop their omnichannel offerings.

Retailers are increasingly adopting the “buy now, pay later” model to attract buyers in an environment of higher retail prices. According to Salesforce, the global “Buy Now, Pay Later” service is expected to account for 8% of online orders this buying season.

Retailers are gearing up for the start of the holiday season (end of October-December) which is considered a busy season for many industry players and market participants. The quarter is also marked by some popular retail events like Halloween, Thanksgiving, Cyber ​​Monday, Black Friday and Christmas which are increasing its importance among retailers. Based on data from Sensormatic Solutions, Black Friday (November 26) is estimated to be the busiest shopping day this year.

According to the Shopkick 2021 survey, 57% of customers are considering opting for online support to meet their shopping needs (as mentioned in a Whiplash article). The increase in COVID-19 cases due to the Delta variant could also boost online shopping preference. Consumers might prefer to shop indoors to follow social distancing measures and take precautions. In addition, this new online shopping habit has brought great convenience to consumers, as all their shopping needs, especially food products, toys and household electronics, can be purchased with just one click.

Online retail ETFs to continue to shine

In this context, let’s take a look at some ETFs that may benefit from the new shopping trend:

Amplify Online Retailing ETFs I BUY

The fund offers investors a profitable way to own a basket of companies that earn significant income from online or virtual retail sales. With assets under management of $ 915.7 million, the fund has an expense ratio of 65 basis points (bps) (read: 5 ETF areas for investors to consider during the September crisis).

ProShares Long Online / Short Stores ETF CLIX

The fund seeks investment results, before fees and expenses, that match the performance of the ProShares Long Online / Short Stores index. With assets under management of $ 71.8 million, the fund has an expense ratio of 65 basis points (read: ETF Long / Short to combat the likely fall of the market in September).

ProShares Online Retail ETFs ONLN

The fund seeks investment results, before fees and expenses, that track the performance of the ProShares Online Retail Index. With assets under management of $ 839.8 million, the fund has an expense ratio of 58 basis points (read: Retail ETFs Look Like Good Bets: Let’s Explore Why).

Global Ecommerce ETF X EBIZ

The fund seeks to invest in companies positioned to benefit from the increased adoption of e-commerce as a distribution model, including companies primarily engaged in operating e-commerce platforms, providing software and marketing services. e-commerce and / or to sell goods and services. in line. With assets under management of $ 200.5 million, the fund has an expense ratio of 50 basis points.

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ETF Amplify Online Retail (IBUY): ETF Research Reports

ETF ProShares Long OnlineShort Stores (CLIX): ETF Research Reports

ETF ProShares Online Retail (ONLN): ETF Research Reports

Global X Ecommerce ETF (EBIZ): ETF Research Reports

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Zacks investment research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Anne G. Cash

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