As consumers prepare their digital shopping carts for Black Friday, the Amplify Online Retail ETF (IBUY) has executed its November rebalance. IBUY adjusted its portfolio to reflect the evolving landscape of e-commerce.
Broadening the Scope of IBUY
The most recent index adjustments highlight a significant pivot toward sector diversification. The fund added familiar consumer discretionary names. However, there was a notable influx of companies classified within the healthcare and consumer staples sectors.
According to the rebalance data, the fund added six new positions. The highest target weightings (2.42%) among the new additions were allocated to Bed Bath & Beyond Inc. (BBBY) and FIGS Inc. (FIGS). The inclusion of FIGS, a direct-to-consumer healthcare apparel company, underscores the growing penetration of e-commerce in niche professional markets.
Furthermore, the fund increased its international exposure. The rebalance introduced Rvrc Holding AB and Apotea AB – both based in Sweden – as well as Hong Kong-based JD Health International Inc (6618). These additions, with target weights of approximately 0.73% each, underscore the fund’s mandate to capture global e-commerce growth.
To make room for these new entrants, the fund removed three holdings that spanned the technology and consumer discretionary sectors. Commerce.com (CMRC), Vtex (VTEX), and 1-800-Flowers.Com (FLWS) were deleted from the index.
Sector Diversification
The inclusion of healthcare-focused online retailers aligns with the view that e-commerce is a structural shift affecting all areas of the economy.
Todd Rosenbluth, head of research at VettaFi, emphasized the importance of looking past the giants of the industry. “Many people think of online retail as a long term trend with mega-cap companies like Amazon.com as the sole beneficiary,” Rosenbluth said. “However, many companies are within the investment theme and they are not just in the consumer discretionary sector. A periodically updated index ETF like IBUY makes it easier to obtain access to a diversified approach.”
Furthermore, the shift in IBUY’s composition demonstrates that the online retail theme is dynamic. Additionally, by incorporating consumer staples and healthcare companies like Apotea AB and Newegg Commerce (NEGG), the fund reduces reliance on the cyclical swings of pure-play discretionary spending.
As Black Friday numbers begin to roll in this weekend, investors in IBUY will be watching not just the sales figures of traditional retailers, but the broader adoption of digital commerce across sectors.
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