Liquid Alternatives: Picking eCommerce ETFs Amidst the Retail Apocalypse

May 15, 2020 | Liquid Alternatives, News
https://dailyalts.com/wp-content/uploads/2020/05/shopping-mall-509536_640.jpg

America’s retail sales just cratered in April.

American retail sales plunged to a record low in April. It is a reflection of the dire straits that the retail industry is in due to the coronavirus pandemic. US sales fell by 16.4% in April, following up on an 8.3% decline in March. This is the largest two-month plunge on record. The virus scare may be the last straw on the camel’s back, as far as America’s already struggling brick-and-mortar shopping industry is concerned. To put salt to injury, online sales grew 8.4% in April. (CNN)

Retail pain

More than two million retail jobs evaporated in April. Many stores have been forced to declare bankruptcy this month. These include luxury chain Neiman Marcus Group Inc. (NYSE: NMG.A) apparel seller J.Crew Group Inc. (NYSE: JCG) and Stage Stores Inc. (NYSE: SSI).

J.C. Penney (NYSE: JCP), has defaulted on two interest payments and maybe next in line.

According to analysts at UBS, physical stores will continue to close and their count will decrease from 883,000 in 2019 to 782,000 over the coming five years. “Our forecast calls for 2% of stores to close every year into 2025,” says UBS analyst Jay Sole. (ETF TRENDS)

How to capitalize on a secular change in trend

It may be time to make an investment in online shopping, and an eCommerce-themed ETF is a good strategy. Here are a few ETFs for your consideration:

Name and ticker of ETF Expense Ratio Index
 ProShares Online R etail ETF (NYSEARCA: ONLN) 0.58% ProShares Online Retail Index
Amplify Online R etail ETF (NasdaqGM: IBUY) 0.65% EQM Online Retail Index
 Global X E-commerce ETF (NasdaqGM: EBIZ) 0.50% Solactive E-commerce Index
 Goldman Sachs Motif New Age Consumer ETF (NYSEARCA: GBUY) 0.50% Motif New Age Consumer Index

Related Story:     REITs: Green Street Warns COVID-19 Will Eliminate Half of Malls                                              

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…