Megaphone icon ETF Database is now VettaFi. Read More >
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
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • 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
    • 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
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Future ETFs Channel
  2. GBUY Might Be Good Buy as E-Commerce Steadies
Future ETFs Channel
Share

GBUY Might Be Good Buy as E-Commerce Steadies

Tom LydonJun 03, 2022
2022-06-03

Confirming that rising interest rates and high inflation are a toxic brew for consumers, the consumer discretionary sector is one of the worst-performing groups in the S&P 500 this year.

Down almost 25% year-to-date, Amazon (NASDAQ:AMZN) — the largest consumer cyclical stock — is a poster child for the sector’s woes. Against that backdrop, it’d be easy for investors to gloss over exchange traded funds such as the Goldman Sachs Future Consumer Equity ETF (GBUY), but they might want to rethink that strategy.

Indeed, Amazon is the second-largest component in GBUY at a weight of 6.8%, but the fund is more comprehensive than meets the eye. Plus, e-commerce is still growing.

In the first quarter, domestic e-commerce sales rose 2.4% on a quarter-over-quarter basis to $250 billion, according to the Commerce Department.

“The first quarter 2022 e-commerce estimate increased 6.6 percent (±1.1%) from the first quarter of 2021 while total retail sales increased 10.9 percent (±0.4%) in the same period. E-commerce sales in the first quarter of 2022 accounted for 14.3 percent of total sales,” according to the Census Bureau, which conducts the retail sales surveys for the Commerce Department.

Among ETFs with ties to the e-commerce theme, GBUY is one of the more relevant — a status obtained via multiple avenues. First, the Goldman Sachs ETF isn’t solely dependent on stocks like Amazon. In fact, of GBUY’s top 10 holdings, just three are direct online retailers. Others are tech, payments, and infrastructure plays, showing that the fund has depth.

Second, GBUY taps into the theme of e-commerce being an international phenomenon. U.S. stocks represent 57.7% of the fund’s roster, which is on the lower end of the category average. A potential source of long-term allure is GBUY’s almost 19% allocation to Asia ex-Japan equities. That’s a region ripe with long-term e-commerce potential owing to rising middle classes and significant room for increased internet adoption.

And yes, as the Census Bureau survey indicates, there’s still room for e-commerce growth in the U.S. That trajectory could resume as consumers get some relief at the pump and in terms of food prices.

“On a not adjusted basis, the estimate of U.S. retail e-commerce sales for the first quarter of 2022 totaled $231.4 billion, a decrease of 17.8 percent (±0.7%) from the fourth quarter of 2021. The first quarter 2022 e-commerce estimate increased 6.7 percent (±1.1%) from the first quarter of 2021 while total retail sales increased 10.5 percent (±0.4%) in the same period. E-commerce sales in the first quarter of 2022 accounted for 14.3 percent of total sales,” according to the Bureau.

For more news, information, and strategy, visit the Future ETFs Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
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
  • © ETF Flows LLC
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