A new ETF will list in London this month to offer investors the opportunity to invest specifically in the explosive growth of eCommerce.
Set up by ETF specialist, HANetf, the new UCITS ETF will track the EQM Global Online Retail Growth Index, which contains shares in listed firms that obtain 60% or more of revenue from online retail and online marketplace commerce.
Key holdings include Etsy, HelloFresh, Peloton, and Delivery Hero.
Under the ticker LON:IBUY, the Global Online Retail UCITS ETF will list on London Stock Exchange.
Costs of IBUY will be 0.69% (TER) said HANetf with its constituents revenue-weighted with a maximum of 25% of exposure to Emerging Markets.
Jane Edmondson, co-founder and principal of EQM Indexes said “The case for online retail has never been stronger.
“Online retail is the fastest-growing segment of retail sales. Competitive pricing, shopping convenience, greater product selection, and rapid delivery have made online retail a disruptive technology that is here to stay."
Edmondson highlighted a number of areas that are supporting the growth of eCommerce including a growing share of the whole retail market, higher mobile penetration and technological developments such as electronic payments, voice-assisted shopping, virtual and augmented reality, and artificial intelligence all of which are trends that have been accelerated by the coronavirus pandemic.
"We are very excited the EQM Global Online Retail Growth Index will serve as the benchmark for a UCITS ETF in Europe," Edmondson added.
"US investors have recognized the investment opportunity in online retail stocks and we expect to see similar demand from investors in Europe, Asia and many other countries using UCITS products."
Hector McNeil of HANetf said: “We are delighted to bring the Global Online Retail UCITS ETF (IBUY) to the European investment market. It focuses on a dynamic, fast-growing sector, that has only just begun to change the way consumers shop all over the world."