Another batch of data support bullish views for a e-commerce exchange traded funds, including the Global X E-commerce ETF (EBIZ).
The Global X E-commerce ETF tries to reflect the performance of the Solactive E-commerce Index, which include companies that are positioned to benefit from the increased adoption of e-commerce as a distribution model, including but not limited to companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and/or selling goods and services online, according to the fund’s prospectus.
In a report out Friday, the U.S. Census Bureau said first-quarter e-commerce sales jumped 3.6%.
“The Census Bureau of the Department of Commerce announced today that the estimate of U.S. retail e-commerce sales for the first quarter of 2019, adjusted for seasonal variation, but not for price changes, was $137.7 billion, an increase of 3.6percent (±0.7%) from the fourth quarter of 2018,” said the Census Bureau.
Shopping and consumer trends are changing as more buyers rely on the convenience of online retailers to quickly and easily meet their discretionary needs. As the retail landscape changes, investors can also capitalize on the trend through exchange traded funds that target the e-commerce segment.
Examining E-Commerce Opportunity
In 2017, 2.73 billion online shoppers accounted for sales of over $2.3 trillion. Looking ahead, the user base is expected to grow to 3.1 billion people globally by 2021. Meanwhile, online retail revenues are expected to surge to $4.88 trillion by 2021.
“The first quarter 2019 e-commerce estimate increased 12.4 percent (±1.1%) from the first quarter of 2018 while total retail sales increased 2.7 percent (±0.4%) in the same period,” according to the Census Bureau. “E-commerce sales in the first quarter of 2019 accounted for 10.2 percent of total sales.”
Additional data confirm the rise of e-commerce.
“The first quarter 2019 e-commerce estimate increased 12.4 percent (±1.1%) from the first quarter of 2018 while total retail sales increased 2.0 percent (±0.4%) in the same period,” notes the Census Bureau. “E-commerce sales in the first quarter of 2019 accounted for 10.2 percent of total sales.”
EBIZ, which debuted last number, holds 39 stocks and is up 29.34% year-to-date.
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