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Should You Invest in the Amplify Online Retail ETF (IBUY)?

Zacks Equity Research
Updated
DG vs. TJX: Which Stock Is the Better Value Option?

The Amplify Online Retail ETF (IBUY) was launched on 04/20/2016, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Discretionary - Retail segment of the U.S. equity market.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Discretionary - Retail is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.

Index Details

The fund is sponsored by Amplify Etfs. It has amassed assets over $301.59 M, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Retail segment of the U.S. equity market. IBUY seeks to match the performance of the EQM Online Retail Index before fees and expenses.

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The EQM Online Retail Index utilizes a rules based methodology to select a globally diverse group of companies with 70% or more of revenue from online and virtual sales.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.65%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Carvana Co (CVNA) accounts for about 5.80% of total assets, followed by Shutterfly Inc (SFLY) and Lands End Inc New (LE).

The top 10 holdings account for about 44.88% of total assets under management.

Performance and Risk

The ETF has gained about 9.22% and is up roughly 39.53% so far this year and in the past one year (as of 05/02/2018), respectively. IBUY has traded between $31.80 and $47.70 during this last 52-week period.

The ETF has a beta of 0.68 and standard deviation of 16.50% for the trailing three-year period. With about 40 holdings, it has more concentrated exposure than peers.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.


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Shutterfly, Inc. (SFLY) : Free Stock Analysis Report
 
AMPL-ONLN RETL (IBUY): ETF Research Reports
 
Carvana Co. (CVNA) : Free Stock Analysis Report
 
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Zacks Investment Research