presented by - financial advisor · 2016-05-24 · growth rates of web-only vs. traditional...
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Presented by
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AmplifyETFs.com
OPPORTUNITIES AMPLIFIED
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OPPORTUNITIES AMPLIFIED
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TODAY’S WEBINAR AGENDA
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REASONS CONSUMERS USE ONLINE RETAIL
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TAILWINDS FOR ONLINE RETAIL
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ONLINE RETAIL SALES GROWTH HISTORY
OPPORTUNITIES AMPLIFIED
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ONLINE RETAIL SALES GROWTH HISTORY
OPPORTUNITIES AMPLIFIED
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GROWTH STORY IN EARLY STAGES
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GLOBAL ONLINE SALES GROWTH EXPECTED
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GLOBAL ONLINE BUYERS EXPECTED TO GROW
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ONLINE RETAIL SEGMENT GROWING SALES
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RECENT WALL STREET JOURNAL ONLINE RETAIL HEADLINES
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WSJ GRAPHIC
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ONLINE RETAIL SEGMENT EARNINGS GROWTH YEAR OVER YEAR
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Innovative. Transparent. Exposure.
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A Brief History of Online Retail
Highlights of some of the historical milestones that paved the way for modern day e-retail commerce:
Major Milestones
The evolution of events and ascent of ecommerce
Source: Internet Retailer, Wikipedia
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What Happens in an Online Retail Minute?
60 seconds of
ONLINE RETAIL
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Source: 1800Flowers; Reuters http://www.reuters.com/article/us-alibaba-singles-day-idUSKCN0SZ34J20151112; Excelrcom, Inc. http://www.bing.com/images/search?q=internet+minute&view=detailv2&id=E246501E6855A89236E93C3A8DCB59A3DC62806A&ccid=MlLrYItX&simid=608037623442115046&thid=OIP.M3252eb608b57b1280b9ef7eaf79c428ao0&mode=overlay&first=1; Asos; eBay; Expandedramblings.com http://expandedramblings.com/index.php/etsy-statistics/2/; Statistic Brain http://www.statisticbrain.com/internet-travel-hotel-booking-statistics/; GrubHub; SimilarWeb https://www.similarweb.com/website/mercadolibre.com.ar; Statista http://www.statista.com/statistics/277841/paypals-total-payment-volume/; Shutterfly; Stamps.com; http://marketrealist.com/2016/05/can-tripadvisors-revenue-growth-reverse-trends-rest-2016/; Wayfair; Zalando.
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Value Proposition of Online Retail
E-Commerce Provides Key Benefits
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Superior Growth Characteristics
Growth Rates of Web-Only vs. Traditional Retailers
In 2011, web sales of web-only retailers surpassed web sales by retail chains and continue to grow at a much faster rate. Source: Internet Retailer Top500 Guide
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US Online Retail Sales
U.S. Online Retail Sales have grown at average rate of more than 20% since 1999, but still comprise only 7.8% of total retail sales
Source: U.S. Department of Commerce Quarterly Retail E-Commerce Sales 1st Quarter 2016, Reported 5/17/16
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US Online Retail Sales
Online sales in the U.S. are expected to top $530 billion by 2020
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April 2016 Retail Report Saw 10.2% YOY Growth in Nonstore Retail
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The “Disruption” in Retail Has Translated to Earnings Growth
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Global Online Retail Sales
Global E-Commerce Expected to Growth to $2.5 Trillion. China, U.S. and the U.K. are among the leading e-commerce markets
Source: eMarketer, as of 12/31/14
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E-Commerce is a Global Shopping Phenomenon
Top 10 Global Shopping Days
GLOBAL E-COMMERCE SHOPPING CALENDAR Global e-commerce
sales totaled $1.7 trillion
in 2015.
Complete Infographic
available on website
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Existing Retail/Internet Indexes Have Little Exposure to Online Retail
E
# of Online Retail
Stocks
% Online Retail Stocks
AMZN % Weight
International Exposure
Consumer Discretionary Select Sector Index 5 15.4 9.9 N
S&P Retail Select Industry Index 12 14.2 3.1 N
Dynamic Retail Intellidex Index 1 2.3 0 N
US Listed Retail 25 2 17.8 13.7 Y
Dow Jones Internet Composite Index 7 30.7 10.3 N
Retail/Internet Indexes
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EQM Online Retail Index
EQM ONLINE RETAIL INDEX
Online Retail Market Segments
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EQM Online Retail Index Representative Holdings
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EQM Online Retail Index Holdings as of 3/31/2016
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Online Retail Index Methodology
In order to be eligible for inclusion in the Index, companies must meet the following conditions: • Significant business operations in one of three online retail business
segments: online retail, online marketplace, online travel.
• At least 70% of revenues derived from online or virtual business transactions as opposed to brick and mortar and/or in-store transactions.
• Listed on a regulated stock exchange in the form of share tradable for foreign investors without restrictions.
• Market capitalization of at least $300 million USD.
• Minimum price of $5 at time of purchase of USD.
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• Average daily traded value of at least 2 million USD
over the last six months.
• Adequate constituent liquidity and accessibility for an exchange listed product.
• Non-US companies will be U.S. exchange traded ADR’s where available, subject to liquidity, otherwise local shares will be utilized.
• No local shares, only ADR’s will be held for companies domiciled in Emerging Market countries or those listed on small regional exchanges.
Online Retail Index Methodology (cont.)
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Additional Online Retail Index Details
Modified Equal-weighting The Index is equal-weighted with a maximum exposure of 25% to non-U.S. stocks.
Semi-annual Rebalancing The Index will be rebalanced semi-annually on the second Wednesday in May and November. The next adjustment will be on November 9, 2016. The Index Committee will meet 2 days prior to reconstitution to establish membership on rebalance date.
Index Calculation and Publishing
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Index Overview
as of 3/31/16
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Index Characteristics
as of 3/31/16
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Index Characteristics
as of 3/31/16
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Index Characteristics
as of 3/31/16
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Index Characteristics
as of 3/31/16
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Index Characteristics
as of 3/31/16
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Recent Index Performance
Past performance is not indicative of future returns. It is not possible to invest in an index. Index return figures are gross total returns.
-10.0%
-5.0%
0.0%
5.0%
10.0%
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Innovative. Transparent. Exposure.
For further information on the Index such as
characteristics, methodology, constituents,
performance backtest history,
or to download our white paper:
“The Investment Case for Online Retail”
Please visit our website at:
http://www.eqmindexes.com
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ACCESS UNIQUE MARKET SEGMENTS
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IBUY FUND DETAILS
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INDEX CONSTITUENTS
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INDEX BREAKDOWN
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POTENTAIL IBUY PORTFOLIO APPLICATIONS
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