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What Tech Crash? Tap Online ETFs for Black Friday & Beyond

The retail landscape is changing, with online sales gradually taking control. Though it is a booming segment, the recent in pain in the behemoth Amazon AMZN and a broader-based tech crash took the space into a tailspin in October (read: ETF Areas That Spooked Investors in October).

But things may see a radical change in the coming days, especially supported by good job numbers. Online retailing is likely to hit a home run this holiday season as evident from upbeat Thanksgiving data. On Thanksgiving, $1.75 billion was shelled out online as of 5 p.m., up 28.6% year over year according to Adobe Analytics (read: A Sumptuous ETF Meal for Thanksgiving).

While Black Friday traditionally kicks off the busy holiday shopping season, Black Friday deals are no longer limited to Friday only. Now, the deal mania is coming earlier every year. Walmart WMT, Amazon, and Best Buy BBY started offering deals’ days in advance from the actual event by promoting Black Friday ads from the beginning of the month.

Between Nov 1 and Nov 22, $38 billion has been spent online, marking a rise of 18.6% from the year-ago level. Sales done on smartphones are also expected to hit a record. M-commerce was a hit on Thanksgiving Day with smartphones comprising more than half of traffic to retail sites.

Adobe Analytics has revealed that about one out of $5 this holiday season will be paid between Thanksgiving Day and Cyber Monday, generating $23.4 billion or 19% of total online sales. Among these, Cyber Monday is expected to hit a record as the largest and fastest-growing online shopping day of the year, with $7.8 billion in sales, up 17.6% from 2017.

Inside Black Friday Online Deals

Amazon is offering up to 50% discount to its Alexa-enabled devices. Walmart’s deals include steep discounts on tablets, laptops and toys. Gap GPS is encouraging to shop online with an additional 10% discount.

Inside the Optimism of the E-Commerce Industry

Internet and e-commerce boast solid growth potential. Per Statista, e-commerce share of global retail sales will likely go up to 17.5% in 2021 from 10.2% in 2017. E-commerce usage increased 16% in 2017 from 14% in the prior year. As much as 49% of shoppers start their searches on Amazon.com, per Kleiner Perkins Caufield & Byers’ Mary Meeker (read: Global X Plans New E-Commerce ETF Rollout).

ETFs to Play

Apart from the rise in online sales for the holiday season, cheaper valuation post heavy October-November selloffs has made the space intriguing now (read: How to Profit From Wall Street Crash With ETFs).

Against this backdrop, investors can tap the surge in online sales via ProShares Online Retail ETF ONLN (up about 1.7% on Nov 21), Amplify Online Retail ETF IBUY (up about 25 on Nov 21) and ProShares Long Online/Short Stores ETF CLIX (up about 0.6% on Nov 21).

Investors can also track Internet ETFs to play the binge. These options are O'Shares Global Internet Giants ETF OGIG (up 2.2% on Nov 21), SPDR S&P Internet ETF XWEB (up 1.6% on Nov 21), First Trust Dow Jones Internet ETF FDN (up 15% on Nov 21) and Invesco NASDAQ Internet ETF ) (up 1.7% on the day) (see all technology ETFs here).

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
AMPL-ONLN RETL (IBUY): ETF Research Reports
SPDR-SP INTRNT (XWEB): ETF Research Reports
FT-DJ INTRNT IX (FDN): ETF Research Reports
The Gap, Inc. (GPS) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
PRO-ONLN RETL (ONLN): ETF Research Reports
PRO-L ONL/S STR (CLIX): ETF Research Reports
OSHR-GL INTR GI (OGIG): ETF Research Reports
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