Market Overview

Global X Plans New E-Commerce ETF

Global X Plans New E-Commerce ETF

Global X, the sponsor of scores of industry exchange traded funds, is looking to add its roster with an ETF dedicated to e-commerce.

New York-based Global X recently filed plans with the Securities and Exchange Commission to launch the Global X E-commerce ETF.

What Happened

The new ETF will track the Solactive E-commerce Index, according to the filing. Assuming the Global X E-commerce ETF is launched, it will trade on the Nasdaq under the ticker “EBIZ.” The annual expense ratio on the new fund is expected to be 0.68 percent, or $68 on a $10,000 investment. The SEC filing with a ticker and expense ratio could be a sign that EBIZ is close to coming to market.

“The underlying index is designed to provide exposure to exchange-listed 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,” Global X said in the filing. 

Why It's Important

The Global X E-commerce ETF will enter an increasingly crowded field of funds focusing on the e-commerce boom. The Amplify Online Retail ETF (NASDAQ: IBUY) is the largest e-commerce ETF, but other funds are gaining traction in the segment. 

Those funds include the ProShares Long Online/Short Stores ETF (NYSE: CLIX), ProShares Online Retail ETF (NYSE: ONLN) and the ProShares Decline of the Retail Store ETF (NYSE: EMTY).

EBIZ's underlying index is cap-weighted. Companies from the following countries are eligible for inclusion in the index: Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland, South Korea, Taiwan, the United Kingdom and the United States.

What's Next

EBIZ's annual fee is slightly higher than IBUY and the aforementioned ProShares ETFs, meaning the Global X fund's ability to garner assets right off the bat could come down to performance and which stocks receive large weights in the portfolio.

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