Amplify Online Retail ETF (IBUY) seeks investment results that correspond generally to the price performance of the EQM Online Retail Index. IBUY is a portfolio of companies generating significant revenue from online and virtual sales. Portfolio holdings fall into four categories: traditional retail, marketplace, omnichannel retail and travel.
IBUY returned 5.88% on a net asset value (NAV) compared to its underlying benchmark, the EQM Online Retail Index at 5.91% for the fourth quarter (Q4) 2024. For comparison, the S&P Retail Select Industry Total Return Index returned 3.2%. View Standardized Performance
IBUY’s 2024 performance aligns with the results of this holiday season. Mastercard SpendingPulse data confirmed that online retail remained the top choice among holiday shoppers in 2024, up 6.7% year over year through December 24 vs. only 2.9% for in-store retail.1 The holiday consumer was willing to spend but was searching for value as demonstrated by the most concentrated e-commerce spending occurring during promotional periods.
Low-cost e-commerce firms Shein and PDD (Temu) saw a surge of popularity. Retailers also effectively used artificial intelligence (AI) for customer service and product search along with curbside pick-up and delivery services. Walmart and Amazon saw record breaking results, while Target and Best Buy struggled to drive sales. UBS analysts forecast that about 45,000 retail stores might close in the coming years as retail locations shift to distribution and fulfillment centers and retail experiences an evolution in which only the fittest, like those with multichannel approaches, will survive.2
The latest U.S. Census Bureau data released in November, reveals that e-commerce generated 16.2% of total retail sales in Q3 2024, a gain of 7.4% over Q3 last year boosted by convenience, selection, competitive pricing, flexible shipping and payment options, and technology enhancements like mobile commerce and AI.3
Top performers contributing to returns in Q4 include Affirm (+49%), Upwork (+56%), and Liquidity Services (+42%)Detractors on performance for the period included Uber Technologies (-20%), Fitell (-69%), and Beyond (-39%)
Shares of Uber Technologies declined on concern about lost share to robotaxis but have since recovered on an announced share repurchase. New rebalance addition Fitell experienced some profit-taking in Q4 after rising 588% over the last 12 months as an online retailer of fitness equipment and related products. Online home goods retailer Beyond, formerly known as Overstock before acquiring the Bed, Bath & Beyond brand, declined on disappointing quarterly results as it cuts costs and positions for a turnaround.
Visit the IBUY fund page for more information including fact sheets, insights, index methodology, and regulatory documents.
1newsroom.mastercard.com/news/press/2024/december/mastercard-spendingpulse-total-u-s-retail-sales-grew-3-8-this-holiday-season-online-remained-choice-for-consumers-increasing-6-7-yoy/
2retaildive.com/news/over-45000-stores-may-close-five-years-ubs/714567/#:~:text=About%2045%2C000%20retail%20stores%20may,growth%20of%204%25%20by%202028.
3census.gov/retail/mrts/www/data/pdf/ec_current.pdf