ETF Report 04.12.2021 – E COMMERCE ETF

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Amazon turns 25 next year—a striking reminder that the e-commerce industry is no longer in its infancy. Yet despite decades of growth, we believe e-commerce still has ample opportunities to expand, and 2020 is giving us a glimpse of that growth potential. E-commerce has become the de facto shopping solution for many consumers amid the COVID-19 pandemic.

In the medium term, e-commerce’s next wave of growth is likely to come from greater penetration of retail categories that historically lagged, like groceries, health, and autos. The opportunity is significant: combined, groceries, health, and autos represented 44% of total U.S. retail sales in the first half of 2020. Another key growth driver includes an expanding user base, from pandemic-driven tech adopters within the Baby Boomer and the Silent Generation, as well as the continued emergence of the emerging market consumer.

Longer-term, we expect technologies like augmented and virtual reality (AR/VR), social commerce, and drone delivery to help e-commerce further narrow the gap with traditional brick-and-mortar shopping.

Reasons to Consider E – Commerce

High Growth Potential

Despite years of strong growth, E-commerce still represented less than one-fifth of global retail sales in 2020, highlighting substantial room for further adoption.

Global Tailwinds

E-commerce is a global theme, poised to benefit as expanding broadband and mobile internet penetration coincide with a rising middle class in developing markets.

New Consumer Preferences

The pandemic forced many businesses to offer goods and services online for the first time, which has shifted consumer expectations and expanded the scope of E-commerce to larger segments like groceries and autos.

The Global X E-commerce ETF (EBIZ) seeks to invest in companies positioned to benefit from the increased adoption of E-commerce as a distribution model, including companies whose principal business is in operating E-commerce platforms, providing E-commerce software and services, and/or selling goods and services online.

Solactive E-commerce Index (SOLEBIZ)

Find below some details of the EBIZ ETF (as of 30/11/2021)

Sectorial Allocation

Regional Allocation

 

Market Cap Allocation (Bn USD)

Performances compared to Peers (in USD)

– 100 basis point – as of 30/11/2021

 

*Index in Net Return (dividends reinvested)
N.B : BUZZ ETF has been launched on 03/02/2021, due to lack of data, the underlying Index is used.
Source: Global x ETF, Bloomberg, Financial Times, Reuters
*Ongoing Charge Figure (OCF) is the estimated annual cost of owning an ETF.**Full replication refers to the situation in which an ETF tracks its benchmark by holding all or a portion of all the underlying securities that make up that benchmark.***An accumulating ETF is an exchange traded fund that automatically invests your dividends for you. Instead of issuing you the dividends, the fund manager reinvests your dividends into the fund. Reverse for a distributing ETF

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