ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Disruptive Technology Channel
  2. Online Retail Still Pivotal for This Internet ETF
Disruptive Technology Channel
Share

Online Retail Still Pivotal for This Internet ETF

Tom LydonMar 16, 2022
2022-03-16

With an array of internet stocks faltering this year and consumer confidence fragile against the backdrop of soaring inflation, it’s understandable that investors may be glossing over e-commerce and online retail equities.

However, long-term opportunity remains with exchange traded funds with internet exposure, including the ARK Next Generation Internet ETF (ARKW C+), and online retail is part of that allure. In fact, online retail is poised to reach a new milestone in the U.S. this year.

The latest reading of the Adobe Digital Economy Index indicates that U.S. consumers will spend $1 trillion online this year, and that’s after online retail sales jumped 9% last year to $885 billion from $813 billion in 2020.

“Adobe also found clear evidence of online inflation throughout the period, with prices rising for 21 consecutive months—and the effect is becoming more severe. In 2020, Adobe found, incremental online spending over the 2019 level totaled $237.9 billion, including $4.7 billion in spending simply due to higher prices,” reports Eric Savitz for Barron’s.

The actively managed ARKW isn’t a run-of-the-mill internet ETF. It lives up to the “next generation” in its name by not being heavily reliant on e-commerce and online retail stocks. However, the ARK Investment Management fund is more than adequately levered to online retail growth and trends.

“In 2020, Adobe says, online grocery shopping in the U.S. grew 103%, to $73.7 billion. Growth has since moderated. The total reached $79.7 billion last year, and is projected to top $85 billion this year,” according to Barron’s. “Adobe found that electronics remains the largest category for online shopping, at $165 billion in 2021, up 8% from 2020. Electronics was 18.6% of overall e-commerce last year, down from 18.8% in 2020 and 21% in 2019, largely a reflection of growth in other categories.”

This indicates that there’s breadth in the online retail space and that a variety of industries can and do drive growth.

For its part, ARKW has exposure to names directly tied to online retail, including Shopify (NYSE:SHOP) and MercadoLibre (NASDAQ:MELI). Additionally, the ARK fund offers exposure to the emerging social commerce theme by way of stakes in Twitter, among other social media firms.

The ETF is also a decent proxy on bitcoin, as Coinbase (NASDAQ:COIN) and the Grayscale Bitcoin Trust (GBTC) combine for 17.35% of the fund’s roster.

For more news, information, and strategy, visit our Disruptive Technology Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X