Retail has been stuck in a rut for some years. Big retailers have been closing stores left and right, so unless you are a contrarian, it is a tough time to invest in the sector. However, there is an ETF that might offer the best way to play the current environment. That ETF is called Amplify Online Retail (IBUY). IBUY has returned just over 15% this year, and tracks an index of companies that make at least 70% of their revenue from online or virtual sales. Three quarters of its holdings are in the US. Only about 10% of retail sales happen online in the US, but that is expected to double over the next five years.
FINSUM: If you are a believer in ecommerce’s ability to disrupt the predominant retail model and make profit, then this seems like a good way to play the sector.