Online sales remain strong during the US holiday season: 4 ETF choices


The coronavirus pandemic continues to provide a boost to the e-commerce industry as shoppers still prefer the mode of shopping online. This holiday season was no different when Americans filled their shopping cart with the click of a button from the comfort of their own homes.

Through a SpendingPulse Mastercard report, holiday retails in the United States, after excluding the automobile from November 1 to December 24, increased 8.5% year-on-year. Online sales grew 11% and contributed 20.9% of overall retail sales, up from 20.6% in 2020 and 14.6% in 2019, on par with the trend of digitization.

The pandemic has remained a blessing in disguise for the e-commerce industry to this day, as people continue to practice social distancing and purchase all essentials online, especially food items.

Given the strong demand for online shopping, merchants are moving towards a hybrid / omnichannel model so that customers can enjoy fast delivery or pick up items ordered online (BOPIS, curbside pickup) at their location. convenience and through apps that organize personal buyers.

In this regard, Oliver Chen, Retail Analyst for Cowen, said several retailers, including Walmart, Costco and Target, are well positioned as they cover all categories of merchandise as well as online shopping options, such as the curbside pickup and door-to-door delivery, according to a CNBC article.

According to Mastercard SpendingPulse, retail sales in the United States – excluding automobiles – for the 75 days from October 11 to December 24 were up 8.6% from the previous year. The report also showed an increase in year-over-year sales for several categories, with 47.3% for clothing, 32% for jewelry and 16.2% for electronics. Department stores saw sales growth of 21.2%, according to the Mastercard SpendingPulse report.

Commenting on the data, Steve Sadove, senior advisor to Mastercard and former CEO and chairman of Saks Incorporated, reportedly said that “shoppers were eager to secure their gifts ahead of the retail rush, with conversations about the chain’s issues. supply and supply of labor sending consumers online. and to stores en masse. Consumers splurged throughout the season, with clothing stores and department stores experiencing strong growth as shoppers sought to put their best dressed foot forward. “

In addition, US consumer confidence strengthened in December. The Conference Board’s consumer confidence index stood at 115.8 in December, comparing favorably with a revised upward reading of 111.9 in November. The December reading topped the consensus estimate for the metric, hitting 111, according to a Bloomberg poll. The latest consumer sentiment readings for December also look encouraging, as the measure has risen despite the rise in Omicron variant cases. Final consumer sentiment at the University of Michigan rose to 70.6 in December, up from preliminary estimates of 70.4 and 67.4 in November.

Focus on online retail ETFs

Against this background, let’s take a look at some ETFs that are well positioned to take advantage of the new shopping trend:

Amplify Online Retail ETFs I BUY

The Amplify Online Retail ETF offers investors a profitable way to own a basket of businesses that earn significant income from online or virtual retail sales. With assets under management of $ 628.1 million, IBUY has an expense ratio of 65 basis points (bps) (read: What makes retail ETFs a good bet now? Let’s explore).

ETF ProShares Long Online / Short Stores CLIX

The ProShares Long Online / Short Stores ETF seeks investment results, before fees and expenses, that match the performance of the ProShares Long Online / Short Stores Index. With assets under management of $ 45.9 million, CLIX has an expense ratio of 65 basis points (read: Online Retail ETFs to Benefit from the Holiday Shopping Craze).

ProShares Online Retail ETFs ONLN

The ProShares Online Retail ETF seeks to achieve investment results, before fees and expenses, that track the performance of the ProShares Online Retail Index. With assets under management of $ 628.8 million, the ONLN has an expense ratio of 58bp (read: Play 5 high beta ETF zones for January and be a bottom angler).

Global Ecommerce ETF X EBIZ

The ETF Global X E-commerce seeks investments in companies positioned to benefit from the increased adoption of e-commerce as a distribution model, including those whose core businesses operate e-commerce platforms, provide software and e-commerce services and / or sell goods and services online. With assets under management of $ 170.8 million, EBIZ has an expense ratio of 50bp (read: Online / e-commerce inflation at record highs: ETFs up for grabs).

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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

ETF Global X Ecommerce (EBIZ): ETF Research Reports

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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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