My eyes are on the Amplify Online Retail ETF (IBUY). The index is a globally diverse basket of publicly-traded companies with significant revenue from the online retail business: traditional online retail; online travel; online marketplace; and omni channel retail.
It provides diversified exposure to online retail, holding 78 companies that derive at least 70% of their revenue from e-commerce. The fund is primarily U.S.-focused (79.1%), with limited exposure to China (5.4%) and other international markets. Compared to similar ETFs like ProShares Online Retail ETF (ONLN), First Trust S-Network Global E-Commerce ETF (ISHP), and Global X E-Commerce ETF (EBIZ), IBUY has the highest number of holdings and the second-lowest concentration in its top 10 stocks, making it a strong choice for diversification.
In 2024, e-commerce continued to gain market share, ending the year with 17.9% of total retail sales in Q4, the highest level recorded. This growth was driven by a strong holiday shopping season, with Mastercard data showing online retail sales up 6.7% YoY compared to only 2.9% YoY growth for in-store shopping. Apparel purchases saw the biggest online shift, growing 6.7% YoY online versus only 0.2% YoY in physical stores.
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