5 ETFs To Splurge On Cyber Monday Record Sales
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After record online sales on Black Friday, Cyber Monday is expected to become the heaviest online spending day ever. This is especially true as shoppers spent a record $11.3 billion in online shopping, up 5.8% year over year, according to Adobe. Per another researcher, Salesforce, online Cyber Monday sales hit $12.2 billion, up 8% from last year.
To tap the solid trends, investors should load ETFs that target the e-commerce corner of the broad retail/technology industry. Some of these include Amplify Online Retail ETF (IBUY - Free Report), ProShares Online Retail ETF (ONLN - Free Report), Global X E-commerce ETF (EBIZ - Free Report), First Trust Dow Jones Internet Index (FDN - Free Report) and Invesco Nasdaq Internet Portfolio (PNQI - Free Report).
The biggest online shopping day got a boost from heavy discounts on everything from pajamas to AirPods that lured shoppers into clicking "buy" despite the strain on household budgets from high inflation.
In the peak hour, shoppers collectively spent $12.8 million per minute, thanks to the toy category, where online sales surged 684% compared to an average day last month. Electronics and computers saw year-over-year increases of 391% and 372%, respectively, while demand for sporting goods, appliances, books, and jewelry also remained robust with triple-digit growth.
Overall, spending throughout Cyber Week, which spans from Thanksgiving through Cyber Monday, notched a hefty $35.27 billion, up 4% year over year. Season-to-date (Nov 1 to Nov 28), consumers spent $107.7 billion online, up 8.7% year over year and are expected to spend a total of $209.7 billion online (between Nov 1 and Dec 31), up 2.5% year over year.
Amplify Online Retail ETF (IBUY)
Amplify Online Retail ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. IBUY holds 58 stocks in its basket, with none accounting for more than 2.8% of assets. Amplify Online Retail ETF has the largest allocation in the marketplace at 45% and traditional retail at 44%.
Amplify Online Retail ETF has attracted $193 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 32,000 shares.
ProShares Online Retail ETF (ONLN)
ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeroes in on companies reshaping the retail space. It tracks the ProShares Online Retail Index, holding 25 stocks in its basket. ONLN is highly concentrated on the top two firms, while the other firms hold no more than 6.5% of the assets. American firms make up 69.6% of the portfolio, while Chinese firms account for 21.2% share.
ProShares Online Retail ETF has accumulated $116.7 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 112000 shares.
Global X E-commerce ETF (EBIZ)
Global X E-commerce ETF invests 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 related software and services, and/or selling goods and services online. It follows the Solactive E-commerce Index, holding 40 stocks in its basket.
Global X E-commerce ETF has accumulated $44.4 million in its asset base and charges 50 bps in annual fees. The ETF sees an average daily volume of 12,000 shares.
First Trust Dow Jones Internet Index Fund (FDN)
First Trust Dow Jones Internet Index Fund follows the Dow Jones Internet Composite Index, giving investors exposure to the broad Internet industry. It holds about 40 stocks in its basket, with none accounting for more than 8% share.
First Trust Dow Jones Internet Index Fund is the most popular and liquid ETF in the broad technology space, with AUM of $4 billion and an average daily volume of around 649,000 shares. FDN charges 51 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High-risk outlook.
Invesco NASDAQ Internet ETF (PNQI)
Invesco NASDAQ Internet ETF follows the Nasdaq CTA Internet Index, which measures the performance of companies engaged in Internet-related businesses listed on the New York Stock Exchange, NYSE American, Cboe Exchange or The Nasdaq Stock Market. The product holds 81 stocks in its basket, with double-digit exposure each in software, Internet & direct marketing retail and interactive media & services.
Invesco NASDAQ Internet ETF has amassed $450 million in its asset base and charges 60 bps in fees per year. The fund trades in a light volume of 34,000 shares and has a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook.
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