With most of the broad and widely observed benchmarks already accounted for, money managers are crafting targeted or thematic ETFs to help investors hone in on specific areas to potentially enhance returns.
“I think investors are looking for access to new segments in the market, but they may not want to buy one or two stocks. They want to buy a basket that’s professionally selected. I think that’s where we come in with a thematic ETF to provide a convenient, professionally selected option,” Christian Magoon, Founder and CEO, Amplify ETFs, said at Inside ETFs 2019.
For example, the Amplify Online Retail ETF (IBUY ) has been a popular thematic play that targets global companies that generate at least 70% of revenue from online or virtual sales. As the market environment shifts and changes, investors may also have the opportunity to capitalize on the growth potential of the e-commerce segment.
“We launched that almost three years ago, and since then, delivered phenomenal value for investors looking to take advantage of the the really strong trend of growth in the online retail space in contrast,” William Belden, President Amplify ETFs, said.
Additionally, Amplify recently expanded its line with the Amplify International Online Retail ETF (XBUY). XBUY is an index-based ETF that takes on foreign companies or those outside the U.S. that expected to benefit from the increased adoption of e-commerce around the world.
For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category on ETF Trends.