CHICAGO--(BUSINESS WIRE)--Amplify ETFs, a firm founded in 2015 by ETF industry veteran Christian Magoon, announces the debut of the Amplify Online Retail ETF (NASDAQ: IBUY). Capturing a growing segment of the retail and consumer discretionary market, the fund holds a basket of companies from around the world that generate the majority of revenue from online and virtual sales. Companies in the IBUY portfolio fall into three online retail categories: marketplace, traditional retail and travel.
IBUY seeks to replicate the price and yield performance of the EQM Online Retail Index (IBUYXT). The rules-based index is comprised of a diverse group of companies that generate at least 70 percent of their revenue from online and virtual retail sales.
“The mall is not dead, it has just moved online,” asserted Jane Edmondson, CEO of index provider EQM Indexes. “Online retailers are well positioned to meet the needs of consumers around the world.”
Current index constituents offer exposure to various market capitalizations, countries and industries. The Index has a maximum of 25 percent exposure to non-U.S. stocks and uses a modified equal weighting methodology.
“The growth rate of online retail sales versus brick and mortar sales has been significant. IBUY offers a compelling opportunity for investors to capitalize on this trend,” said Christian Magoon, founder and CEO of Amplify ETFs. “The portfolio holdings of IBUY may increase overall portfolio diversification for investors with traditional brick and mortar retail and consumer discretionary exposure.”
Working alongside Magoon in bringing IBUY to market is a team of professionals with a depth of experience in ETF operations, compliance, marketing and distribution. “We believe that as technology continues to reshape how consumers spend money, the online retail market segment will continue to blossom,” commented John Phillips, director of operations at Amplify. “This ETF seeks to provide a direct opportunity to invest in this area of growth.”
Investors can learn more about IBUY at AmplifyETFs.com.
About Amplify ETFs
Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Using those benefits as a foundation, Amplify seeks to build ETFs powered by investment strategies from leading index providers and asset managers within unique market segments. Amplify ETFs are managed by Amplify Investments, LLC, a registered investment advisor. The firm was founded by Christian Magoon, an ETF veteran who has launched over 50 ETFs in the United States to date.
IBUYXT, is a modified equal-weighted index of global companies that receive at least 70% of revenue from online and virtual sales. The index is rebalanced and reconstituted on a semi-annual basis in May and November. Price and return data are independently calculated and published by Solactive AG. Quotes for the index symbol “IBUYXT” can be accessed via Bloomberg, Reuters, and other financial data providers. Additional information about the index can be accessed from EQM Indexes dedicated website at www.eqmindexes.com.
EQM Indexes LLC has licensed its Online Retail Index exclusively to ETF provider Amplify Investments.
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' statutory and summary prospectus, which may be obtained by calling 855-267-3837. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. The fund is new with limited operating history. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. A portfolio concentrated in a single industry, such as the online retail industry, makes it vulnerable to factors affecting the industry. The Fund may face more risks than if it were diversified broadly over numerous industries or sectors. Investments in consumer discretionary companies are tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence. Online retail companies are subject to risks of consumer demand and sensitivity to profit margins. Additionally technology and internet companies are subject to rapidly changing technologies; short product life cycles; fierce competition; aggressive pricing and reduced profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving industry standards; and frequent new product introductions. Information technology companies may be smaller and less experienced companies, with limited product lines, markets or financial resources and fewer experienced management or marketing personnel. Stocks of many internet companies have exceptionally high price-to-earnings ratios with little or no earnings histories. Information technology company stocks, especially those which are internet related, have experienced extreme price and volume fluctuations that are often unrelated to their operating performance. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments in smaller companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities involve greater volatility and political, economic, and currency risks and differences in accounting methods. The Fund's return may not match or achieve a high degree of correlation with the return of the underlying Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index.
Diversification does not assure a profit or prevent against a loss in a declining market.
Amplify ETFs are distributed by Quasar Distributors LLC.