IBUY: Revisiting One Of My Worst Calls

Summary

  • IBUY has had a terrible past year, and it was a fund I categorically regret recommending in 2021.
  • While the sharp drop probably limits the downside going forward, the short-term performance and headwinds facing the U.S. consumer keep me cautious.
  • Inflation is eating away at disposable spend, which is not good news for a retail-oriented fund.
  • Further, mortgage rates are up, pinching new home-buyers. This comes at a time when federal stimulus is also at a much lower level.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Hispanic businessman burying his head in sand on beach, Perth, Western Australia, Australia

Jacobs Stock Photography Ltd/DigitalVision via Getty Images

Main Thesis / Background

The purpose of this article is to evaluate the Amplify Online Retail ETF (NYSEARCA:IBUY) as an investment option at its current market price. The fund's objective is "to

Performance

Performance (Seeking Alpha)

E-Commerce as a Percent of Total Retail

E-Commerce as a Percent of Total Retail (Census Bureau )

Consumer Sentiment

Consumer Sentiment (Yahoo Finance)

Inflation Outpaces Wage Growth

Inflation Outpaces Wage Growth (S&P Global)

Oil Prices

Oil Prices [BBC]

IBUY Top Holdings

Top Holdings (Amplify)

US Fiscal Support Declining

US Fiscal Support Declining (Goldman Sachs)

Please consider the CEF/ETF Income Lab

This article was written by

Dividend Seeker profile picture
7.9K Followers
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

I've been a successful investor for about 15 years and my aim is to help my followers on their journey. I won't pump risky investments nor discuss topics I don't genuinely follow and research. In that spirit, I list my portfolio here for transparency.  

I'm a native New Yorker and I work for a major U.S. bank. I escaped to North Carolina for graduate school and I don't see myself ever leaving. I was a D1 athlete in college (men's tennis) and compete competitively to this day. My Bachelor's and MBA are both in Finance.

Broad market: VOO; QQQ; DIA, RSP

Sectors: VPU / BUI; VDE, RYE; KBWB; XRT

Non-US: EWC; EWU; EIRL; EWA

Dividends: DGRO; SDY, SCHD

Municipals/Debt Funds: NEA, BBN, PDO, PCK, VCV, PML

Stocks: WMT, JPM, MAA, SWBI, MCD, DG, WM

Cash position: 30%

Disclosure: I/we have a beneficial long position in the shares of XRT either through stock ownership, options, or other derivatives. 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.

Recommended For You

Comments (6)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.