Amplify Online Retail ETF (IBUY)

ETF Amplify Online Retail ETF (IBUY)

Profile:

The ETF Amplify Online Retail ETF (IBUY) focuses on companies that generate a significant portion of their revenue from online retail sales. This includes e-commerce giants like Amazon and Alibaba, as well as companies that have transitioned to online sales models such as Walmart and Target. IBUY invests in companies across the globe, with a focus on the United States and China.

Objective:

The primary investment goal of IBUY is to track the performance of the EQM Online Retail Index, which comprises companies that are leading participants in the online retail space. IBUY aims to offer investors a diversified exposure to this rapidly growing sector.

Issuer:

Amplify ETFs

Reputation and Reliability: Amplify ETFs is a subsidiary of Amplify Holdings, a leading ETF issuer with a strong reputation in the market. Amplify ETFs offers a variety of innovative and actively managed ETFs across diverse sectors.

Management: Amplify ETFs' management team consists of experienced professionals with expertise in ETF development and portfolio management.

Market Share:

IBUY has a market share of approximately 3.5% within the online retail ETF market.

Total Net Assets:

IBUY currently has total net assets of approximately $400 million.

Moat:

IBUY's unique strategies and focus on the online retail sector provide a moat for the ETF.

• Actively Managed: Unlike many passively managed ETFs, IBUY actively selects its holdings based on a proprietary selection process, allowing it to potentially outperform the benchmark index.
• Thematic Focus: IBUY's focus on the online retail sector provides investors with targeted exposure to a high-growth industry that is benefiting from the increasing adoption of e-commerce.

Financial Performance:

IBUY has delivered strong historical performance, outperforming the broader market and its benchmark index. Since its inception in 2016, IBUY has generated an annualized return of over 20%, compared to the S&P 500's return of around 10% during the same period.

Growth Trajectory:

The online retail sector is expected to continue its strong growth trajectory in the coming years, driven by factors such as increasing internet penetration and evolving consumer behavior. This bodes well for IBUY's future prospects.

Liquidity:

IBUY has an average daily trading volume of over 400,000 shares, ensuring its liquidity and facilitating seamless trading.

Market Dynamics:

The online retail sector is influenced by various factors, including economic growth, consumer spending, technological advancements, and competition. Investors should remain aware of these dynamics.

Competitors:

• VanEck Vectors Retail ETF (RTH)
• ProShares Online Retail ETF (ONLN)
• Global X E-commerce ETF (EBIZ)

Expense Ratio:

IBUY has an expense ratio of 0.65%, which is slightly higher than the average expense ratio for actively managed ETFs.

Investment Approach and Strategy:

IBUY utilizes an actively managed approach and invests in a diversified portfolio of online retail companies.

Composition:

IBUY primarily holds equities of publicly traded companies in the online retail sector.

Key Points:

• Focused on the high-growth online retail sector.
• Actively managed with a distinct selection process.
• Strong historical performance with potential for continued growth.
• High liquidity and manageable expense ratio.

Risks:

• Volatility: Online retail companies are exposed to higher volatility compared to traditional brick-and-mortar retailers.
• Market Risk: The ETF's performance is directly tied to the performance of the online retail sector, which could be impacted by various macroeconomic and industry-specific factors.

Who Should Consider Investing:

IBUY is suitable for investors seeking:

• Exposure to the rapidly growing online retail sector.
• Potential for above-market returns.
• Acceptance of higher volatility in exchange for growth potential.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, IBUY receives a Fundamental Rating of 8.5 out of 10. The ETF exhibits strong financial performance, a strategic focus on a high-growth sector, and a capable management team. However, investors should be mindful of the associated volatility risks and the dependence on the online retail sector's performance.

Resources and Disclaimers:

• IBUY website: https://www.amplifyeft.com/ib uy.html
• ETF.com: https://www.etf.com/IBUY
• Morningstar: https://www.morningstar.com/etfs/arcx/IBUY

Disclaimer: The information provided is for general knowledge and informational purposes only, and does not constitute financial advice. Investing involves risk, and the value of investments can fluctuate.