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IBUY: Despite E-Commerce Nature, I Don't Fear Re-Openings

Mar. 09, 2021 5:21 AM ETAmplify Online Retail ETF (IBUY)6 Comments


  • IBUY continues to push higher as investors look for e-commerce plays.
  • The fund also has exposure to "experience" e-commerce stocks, which will benefit from re-openings.
  • With stimulus checks likely to start hitting American households soon, consumer spending could see an uptick.
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Main Thesis

The purpose of this article is to evaluate the Amplify Online Retail ETF (NYSEARCA:IBUY) as an investment option at its current market price. This fund has been one of my top short-term picks, and it continues to be going forward. I see online buying accelerating in the year ahead, despite the pressure the economic re-opening will bring on that thesis. Further, IBUY holds many companies that will see an increase in demand from re-openings, so its portfolio is well positioned for a post-Covid world. Finally, rising consumer sentiment could be a tailwind for many discretionary corners of the market, whether in e-commerce or retail as a whole.


First, a little about IBUY. The fund's objective is "to provide investment results that, before fees and expenses, correspond generally to the price performance of the EQM Online Retail Index. The Index is a globally-diverse basket of publicly-traded companies that obtain 70% or more of revenue from online or virtual sales." Currently, the fund sits at $126.41 and yields .49%, based on the last annual distribution paid in December. I reiterated a bullish outlook for IBUY when 2021 got underway, and that call has been vindicated to date. While the broader market is up slightly, IBUY has registered a 6% gain:

Source: Seeking Alpha

With vaccine distributions underway and a general move to re-open economies around the world, I thought it was an opportune time to take another look at IBUY to see if I should adjust my rating. After review, despite the obvious concern that the re-openings of economies will hurt e-commerce plays, I actually don't see that thesis impacting IBUY substantially. I believe the shift to e-commerce is here to stay and, importantly, IBUY has a lot of exposure to companies that sell their products and services online, but will actually benefit from a re-opening U.S. economy

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This article was written by

Dividend Seeker profile picture

I've been in the Financial Services sector since 2008, which gives me an invaluable insight in how markets can turn. I currently work for a large-cap US Bank in funds management. I was a D1 athlete in college (men's tennis) when I got my Finance degree. I received my MBA in 2013 in North Carolina.

My readers/followers can trust that I won't pump any investment nor discuss a topic I don't genuinely follow and research. In that spirit, I list my portfolio here for transparency

Broad market: VOO; DIA, RSP

Utilities: VPU, BUI 

Energy: VDE, RYE, IXC

Innovation: GINN, QQQ


Dividends: DGRO; SDY, SCHD

Municipals/Debt Funds: BGT, Individual muni issues (NC)


Cash position: 25%

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (6)

cccraig20 profile picture
I have held it for over 16 months. I wonder if I should trim it. Not sure. But your article leads me to think I should add to the position during a dip. Which is right now. LOL
Dividend Seeker profile picture
Down days have been too few recently!
Dividend Seeker profile picture
Almost 10% in a week...amazing
AnthonyGiordano profile picture
@Dividend Seeker It is! I've been waiting for an entry point, and waiting and waiting, and waiting.....I may just pull the trigger. Happy for those who own it and making a profit though. A relative is in this industry directly and she tells me the talk within the industry is "growth for the unseen future." Here is an interesting link she sent me: techcrunch.com/...
Dividend Seeker profile picture
Thanks for sending Anthony, will give it a read. I would say buying in here is a bit speculative but, given the state of equity and bond markets (and crypto, real estate, etc.) what isn't...
jphein profile picture
XBUY for foreign exposure
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