Market Overview

3 ETFs For Cyber Monday

3 ETFs For Cyber Monday

On the retail front, Black Friday is in the rearview and that means one thing: Cyber Monday is here. Last year, Cyber Monday sales checked in at $9.4 billion, up from $7.9 billion in 2018 and that number will likely rise in exponential fashion this year due to the coronavirus pandemic.

There's already momentum for Cyber Monday festivities. Black Friday online sales are estimated at $9 billion, a 21.6 increase from 2019, according to Adobe Analytics.

The research firm forecasts Cyber Monday spending this year will be between $10.8 billion and $12.7 billion. Even at the low end of that range, it's still a substantial increase from the same event in 2019 and confirms the rise of online retail.

The following three exchange-traded funds are among this year's best-performing retail assets and will help investors capitalize on another record-breaking Cyber Monday.

Global X E-commerce ETF (EBIZ)

The Global X E-commerce ETF (NASDAQ: EBIZ) is up almost 71% year-to-date, an arguably miraculous performance for an ETF in this category because none of the 40 stocks residing in EBIZ account for more than 5.72% of the fund's weight. That means EBIZ isn't excessively allocated to Amazon (NASDAQ: AMZN). In fact, the largest U.S. e-commerce company isn't among the top 10 holdings in EBIZ.

While EBIZ is credible on domestic retail events, including Black Friday and Cyber Monday, the secret to the ETF's success this year is international exposure. Just over half the fund's weight is allocated to U.S. stocks and 27.5% is devoted to the vibrant Chinese online retail market. Those are two important bases to cover.

“In China, retail e-commerce penetration sits at 25.2%, versus 16.1% in the U.S. However, U.S. e-commerce is rapidly growing – online sales in the U.S. are expected to total $795 billion in 2020, up 32% year-over-year,” according to Global X research.

Amplify Online Retail ETF (IBUY)

The Amplify Online Retail ETF (NYSE: IBUY) is another star in the retail ETF fray, having surged 108% year-to-date. Quietly, this is a $1.20 billion ETF, making it one of the largest retail funds, online or otherwise.

IBUY holds 58 stocks and as is the case with the aforementioned EBIZ, the Amplify fund doesn't allocate too heavily to individual names. The biggest weight in the fund is just 3.86% and Amazon isn't among the top 10 holdings.

Another advantage with IBUY is that the fund isn't large-cap dependent. Mid- and small-cap stocks combine for 42.5% of the fund's roster and that's a favorable trait at a time when smaller stocks are reestablishing leadership roles.

ProShares Online Retail ETF (ONLN)

Up 102.67% this year, the ProShares Online Retail ETF (NYSE: ONLN) is one of the juggernauts among retail ETFs and one of the fastest-growing funds in this category. A combined weight of over 31% to Amazon and Alibaba (NYSE: BABA) is one explanation for ONLN's success as its status as one of the ETF's largest weights to Amazon. Investors have added nearly $621 million to ONLN this year.


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