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IBUY: What You Need to Know About the Amplify Online Retail ETF

1. What ETF is Amplify launching and why?

Consumers around the world are increasingly buying online due to competitive pricing, increased selection and convenience. Online sales are coming at the expense of traditional brick and mortar retailers, and as a result, these traditional retailers are losing their investment value.

The Amplify Online Retail ETF (IBUY) was launched to provide investors with a convenient way to capitalize on the worldwide growth of online retail sales. IBUY holds a global basket of stocks that receive 70 percent or more of their revenue from online sales. Current retail and consumer discretionary ETFs are dominated by traditional brick and mortar companies, making IBUY a complimentary option for many portfolios.

2. What is the strategy behind the new ETF?

IBUY is an index based ETF. The benchmark for the fund is the EQM Online Retail Index (IBUYXT). The index is designed to track a group of global companies that derive significant revenue from online and virtual retail commerce. Companies within the index fall into three business segments: online traditional retail, online marketplace and online travel.

The index methodology has minimum liquidity and market access requirements for companies to be eligible for inclusion. Perhaps the most important criteria as it relates to the index’s strategy is that a firm must receive a minimum of 70 percent of revenue from online and virtual retail commerce in order...