Online Shopping Galore
The last thing I want to do after eating way too much turkey and stuffing is to go shopping. I plant myself on the nearest sofa, turn on the TV and enjoy the company of my loved ones.
But lots of people feel differently. “On Thanksgiving Day, Americans spent a whopping $4.2 billion shopping this year, shattering last year’s record by 14.5%,” reports RiskHedge CEO Olivier Garret.
The next day, Black Friday, Americans spent another $7.4 billion, which works out to $5.3 million per minute.
That’s some serious shopping!
But today’s Black Friday shoppers don’t get up before dawn, stand in freezing lines and stampede the sale racks when the doors open.
Instead, the majority of American shoppers are staying home and shopping over the internet. According to Adobe, which monitors shopping patterns, in-store sales for Black Friday were down 6% from last year. Conversely, online sales were up by 22%.
Don’t forget about Cyber Monday. According to Adobe, Americans spent $9.4 billion on Cyber Monday. That’s a 19% year-over-year increase.
It was the biggest online shopping day ever!
Overall, online holiday spending for 2019 is predicted to hit $143.8 billion, a 14% increase from the $126 billion spent last year.
Online commerce is only going to get bigger, and that means big profits for investors who know how to play it.
The easiest way is through ETFs and there are three ETFs you should highly consider:
Amplify Online Retail ETF (NASDAQ: IBUY): Largest holdings include Peloton Interactive, Lands’ End, Grubhub, Carvana Co. and Chegg Inc.
Global X E-Commerce ETF (NASDAQ: EBIZ): Largest holdings includes NetEase, Vipshop Holdings, Shopify, Ocado Group and Alibaba.
ProShares Online Retail ETF (NYSE: ONLN): Largest holdings include Amazon, Alibaba, Shutterstock, Stitch Fix and Grubhub.
Make no mistake — e-commerce and online retailing are going to do nothing but get bigger and bigger and bigger. According to a study from Beeketing, the global e-commerce market is going to grow by 265% a year and hit $4.9 trillion by 2021.
And with online retail sales at only 14% of total retail sales, the opportunity for growth is spectacular.
You won’t find me roaming around a shopping mall. That’s my idea of hell on Earth.
But I’m a big fan of online shopping. And I suspect savvy investors should be too.
Chief Income Expert, Mike Burnick’s Wealth Watch