ETFs From 6 Investing Areas to Gain from Cyber Week Sales
Just as shoppers have grabbed the Black Friday and Small Business Saturday deals, retailers have started preparing for Cyber Monday — the next big shopping event. In fact, Cyber Monday has grabbed maximum consumer attention in the recent past as "the preferred day for deals."
Adobe thinks “Cyber Week” (from Thanksgiving to Cyber Monday) will amass $37.2 billion in U.S. online sales, nearly 17% of all sales for the holiday period. Salesforce is more bullish having predicted that it will make up about 25% of all holiday purchases this year and will total $53 billion globally. According to estimates from Adobe Analytics, Cyber Monday will remain the biggest day of the holiday shopping season, driving $12 billion in online spending, up 6.1 percent from last year.
Black Friday online sales in the United States hit $9.8 billion, a new record, with a 7.5% increase over the previous year. Flexible payment options and deep discounts played a key role. Sales easily surpassed Thanksgiving figures and Adobe's forecasts, totaling $9.8 billion compared to a predicted $9.6 billion. Salesforce reported even higher figures, with $16.4 billion in the U.S. and $70.9 billion globally.
A record 79% of all shopping activity on Black Friday, including browsing and purchasing, occurred on mobile devices. E-commerce, making up around 15% of all sales, exhibited faster growth, increasing by about 7% in the last quarter.
Top gift purchases in the cyber week included clothing and accessories (bought by 51 percent of those surveyed), toys (32 percent), gift cards/certificates (28 percent), books/music/movies/video games (27 percent) and electronics (24 percent), per NRF.
Against this backdrop, below, we highlight a few ETFs that are great bets in the current scenario.
Mobile Payments – ETFMG Prime Mobile Payments ETF (IPAY)
Retailers, of late, are offering customers flexibility in financing and shopping. Buy-Now-Pay-Later or Buy Online, Pick-Up in Store (BOPIS) are some of the offers that are in vogue currently. Plus, mobile shopping definitely needs mobile payments. All these factors make IPAY a lucrative bet.
Fintech – ARK Fintech Innovation ETF (ARKF)
The fund looks to offer exposure to fintech stocks. A company is deemed to be engaged in the theme of Fintech innovation if (i) it derives a significant portion of its revenue or market value from the theme of Fintech innovation, or (ii) it has stated its primary business to be in products and services focused on the theme of Fintech innovation. A top buy-now-pay-later stock Square SQ takes about 8.30% of the fund.
Video Game – Wedbush ETFMG Video Game Tech ETF (GAMR)
Video games are among the top toys’ category for holiday 2023. The underlying EEFund Video Game Tech Index of GAMR tracks companies actively involved in the electronic gaming industry, including the entertainment, education and simulation segments.
Clothing – SPDR S&P Retail ETF (XRT)
The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P. Apparel Retail takes about 25% of the fund.
Electronics – VanEck Semiconductor ETF (SMH)
Consumers are bonging on to buy electronics for gift purpose. Semiconductors are the basic materials used in the present solid state electronic devices. The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment.
Online Retail – Amplify Online Retail ETF IBUY
Since online sales have been predominant in this important time period, a mention of an e-commerce ETF is must. The fund tracks the EQM Online Retail Index, which is a globally-diverse basket of publicly traded companies that obtain 70% or more revenues from online or virtual sales. No stock accounts for more than 2% of the fund.
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SPDR S&P Retail ETF (XRT): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
Block, Inc. (SQ) : Free Stock Analysis Report
Amplify Online Retail ETF (IBUY): ETF Research Reports
Wedbush ETFMG Video Game Tech ETF (GAMR): ETF Research Reports
ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports
ARK Fintech Innovation ETF (ARKF): ETF Research Reports
