Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

2 ETFs That Could Profit From Increased Online Shopping On Cyber Monday

By (Tezcan Gecgil/ )ETFsNov 29, 2021 11:16
2 ETFs That Could Profit From Increased Online Shopping On Cyber Monday
By (Tezcan Gecgil/ )   |  Nov 29, 2021 11:16
Saved. See Saved Items.
This article has already been saved in your Saved Items

Today is Cyber Monday, a day when online retailers stateside and increasingly worldwide offer significant discounts to shoppers. Last year, US sales revenue was close to $11 billion on Cyber Monday.

Statistics from Adobe highlight that over 41% of individuals used their mobile devices (as opposed to desktop) when they shopped.

As the new Omicron variant of the coronavirus dominates news headlines, a significant number of people are likely to shop online rather than visit crowded bricks-and-mortar stores. And metrics suggest that US shoppers are most interested in deals from names like Amazon (NASDAQ:AMZN), Target (NYSE:TGT), Walmart (NYSE:WMT), Best Buy (NYSE:BBY) and Kohls (NYSE:KSS), among others.

Therefore, today’s article introduces two thematic exchange-traded funds (ETFs) that could benefit from increased digital sales. Online shopping raises the specter of cyber crime so investors may also consider cybersecurity ETFs.

  1. ProShares Online Retail ETF

  • Current Price: $65.50
  • 52 Week Range: $63.21 - $93.45
  • Expense Ratio: 0.58% per year

The share of e-commerce as a percentage of overall retail sales has been increasing steadily over the past decade, and is now over 13%. Our first fund, the ProShares Online Retail (NYSE:ONLN), invests in 40 companies that mainly sell merchandise online. The fund was first listed in July 2018 and has close to $834.2 million under management.

ONLN Weekly
ONLN Weekly

Around three-quarters of the companies in the fund come from the US. Then China, Taiwan, Mexico and Argentina, among others. Close to 70% of the fund is in the top 10 stocks. In other words, it is top heavy. In fact, the top three names make up 40% of the fund.

Amazon has the highest slice with 26.06%, followed by the Chinese e-commerce giant Alibaba (NYSE:BABA), which came under significant regulatory pressure in 2021. Next in line are eBay (NASDAQ:EBAY), Singapore-based Sea (NYSE:SE), logistics platform DoorDash (NYSE:DASH) and (NASDAQ:OSTK), which has been steadily increasing its crypto exposure in recent years.

So far in 2021, ONLN is down 13.6%. After seeing a record high in February, the ETF lost around 30% of its value.

In recent months, investors rotated from shares that benefited from the 'stay-at-home, work-from-home' trend of 2020 into the post-COVID-19 era stocks. As a result, the fund has come under pressure. However, as many countries reintroduce measures against the Omicron variant, ONLN might easily catch investors’ attention once again. Interested readers could consider buying the ETF between $62-$65.

Meanwhile, investors looking for an equal-weighted fund that invests in a range of US-based retailers might consider researching the SPDR® S&P Retail ETF (NYSE:XRT).

2. ETFMG Prime Mobile Payments ETF

  • Current Price: $58.74
  • 52-week Range: $57.95 - $73.38
  • Expense Ratio: 0.75% per year

Increasing global e-commerce sales volumes have brought attention to companies that focus on non-cash transactions and mobile payments. Recent metrics suggest that the global mobile payments market, which was valued close to $1.5 trillion in 2020, should reach $5.4 trillion in 2026. Such an increase in revenue would mean a compound annual growth rate (CAGR) of about 24.5%.

Today’s second fund, the ETFMG Prime Mobile Payments ETF (NYSE:IPAY), gives exposure to businesses in the electronic and mobile payments industry. They include credit card networks, payment processors, as well as those that provide software, payment infrastructure, and payment solutions like prepaid cards, smartcards or virtual wallets. The fund started trading in July 2015.

IPAY Weekly
IPAY Weekly

IPAY, which has 52 holdings, tracks the Prime Mobile Payments Index. The top 10 names make up about 55% of net assets of slightly over $1 billion. In terms of sub-sectors, we see Data Processing & Outsourced Services (84.32%), Consumer Finance (11.32%), Application Software (2.62%) and Electronic Equipment & Instruments (1.13%).

Leading holdings on the roster include the integrated payments group American Express (NYSE:AXP); financial services and payments technology heavyweights Mastercard (NYSE:MA) and Visa (NYSE:V); financial technology (fintech) group Square (NYSE:SQ), known for its digital payments ecosystem; and the Netherlands-based Adyen (OTC:ADYEY), which provides mobile and point-of-sale (POS) payment solutions.

Year-to-date, IPAY is down 11.7%. Since hitting an all-time high (ATH) at the end of April, the ETF has lost about 20% of its value. Potential buy-and-hold investors could regard the $55 level as a better entry point.

2 ETFs That Could Profit From Increased Online Shopping On Cyber Monday

Related Articles

2 ETFs That Could Profit From Increased Online Shopping On Cyber Monday

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email