The pandemic brought business at many stores to a near-screeching halt. But some online retailers thrived during the quarantine—including Overstock.com (symbol, OSTK (opens in new tab)), where April sales were up 120% compared with April 2019.
That helps explain why the Amplify Online Retail (IBUY (opens in new tab)) exchange-traded fund, which owns shares of Overstock, posted a 25.7% return over the past 12 months. That beat 99% of its peers (funds that focus on consumer-spending stocks). Over the same stretch, the broad market eked out a 2.5% gain. Two of the ETF’s best performers, Stamps.com (STMP (opens in new tab)) and Shopify (SHOP (opens in new tab)), each notched triple-digit percentage gains over the past 12 months.
The fund tracks an index of U.S. and foreign companies that generate at least 70% of annual revenues or $100 billion in annual sales from internet-based retail, travel or services. The 47 stocks that match the ETF’s parameters are weighted equally, so the shares of Latin American online auction and e-payment firm Mercado Libre (MELI (opens in new tab)) or Peloton Interactive (PTON (opens in new tab)), for instance, get as much play as shares of Chinese e-commerce giant Alibaba Group Holding (BABA (opens in new tab)) or Amazon.com (AMZN (opens in new tab)), the biggest online retailer in the world. The fund is rebalanced twice a year.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of Kiplinger’s expert advice - straight to your e-mail.
In the U.S., online sales account for 11% of total retail sales; in China, roughly 35%; and in Europe, nearly 10%, on average. “It’s still early in the game” for online retail, says Christian Magoon, chief executive of Amplify. Retail e-commerce sales worldwide are expected to increase to $6.5 trillion in 2022 from $3.5 trillion in 2019, according to Statista.
-
-
State "Stimulus Checks" Are a Thing in 2022 – Will You Get One?
To help counter high inflation, pandemic woes and other financial hardships, some states are sending tax rebate "stimulus" checks or other payments to residents.
-
How Young People Can Own Their Financial Future Authentically
It starts with trusting the process. The good news is Gen Zers and younger Millennials are on their way, a new study says.
-
Kiplinger's Weekly Earnings Calendar (Oct. 3-7)
stocks Check out our earnings calendar for the upcoming week.
-
The 15 Best Stocks to Buy for the Rest of 2022
stocks to buy The lesson of the past two years: Be ready for anything. Our 15 best stocks to buy for the rest of 2022 reflect several possible outcomes for the final quarter of this tumultuous year.
-
Don't Give Up on the Eurozone
mutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
5 Fantastic Actively Managed Fidelity Funds to Buy
mutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
-
10 Bond Funds to Buy Now
Investing for Income Bond funds have seen sizable losses so far this year, but yields are now rising to attractive levels for income-starved investors.
-
Vanguard Global ESG Select Stock Profits from ESG Leaders
mutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and Why
Kip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.
Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
