Amplify Online Retail ETF Rides a Summer Surge in Performance

The Amplify Online Retail ETF (IBUY) has rallied over the past month, signaling a robust appetite for online consumer discretionary spending despite persistent macroeconomic headwinds. Outsized gains in specialized healthcare retail and online travel names have driven performance for IBUY’s underlying index.

Key Takeaways

• Digital healthcare and specialized e-commerce marketplaces anchored the monthly rally, with top-performing holdings delivering returns over 25%.
• Top individual security performance comfortably drove net positive attribution across the portfolio’s core index holdings.
• Strong underlying fundamentals suggest that advisors can utilize targeted e-commerce exposure to capture growth-tilted tactical alpha.

Top Security Attribution Drives June Gains

Data reflecting the portfolio’s index attribution in June show a positive performance trajectory. Leading the charge for the portfolio was Hims & Hers Health Inc (HIMS), which maintained an average weight of 2.7% and posted an impressive 32.6% return over the month.

Digital home furnishings marketplace Wayfair Inc (W) also proved to be a driver of growth, returning 27.9% with an average weight of 2.9%, adding nearly 1% to the ETF’s performance. Other notable contributors included travel platform Tripadvisor (TRIP) — up 22.6% — and grocery delivery staple Instacart (CART) — up 19.0%. Though smaller in average weight at 0.9%, Victoria’s Secret (VSXY) experienced a massive 51.8% return spike, providing a 0.3% boost to the ETF.

Rounding out the top tier, Redcare Pharmacy (RDC) posted a substantial 48.1% return on an average weight of 0.9%, contributing 0.3% to the index. 

Diversified Index Design Beyond Retail Giants

IBUY is based on the EQM Online Retail Index (IBUYXP), a global basket of companies deriving revenue from online retail. This includes traditional online retail, online travel, online marketplace, and omnichannel retail.

Furthermore, the fund uses a modified equal-weighting approach. Market-cap-weighted strategies that can become over-concentrated in online retail giants. However, IBUY takes a more diversified approach than other funds in the segment, offering exposure across the cap spectrum. 

This systematic diversification makes it an ideal vehicle for advisors evaluating the long-term journey of online retail. Additionally, this unique structural edge positions the fund to capitalize on targeted consumer events, such as the Prime Day online retail boom.

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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for IBUY, for which it receives an index licensing fee. However, IBUY is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of IBUY. 

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