Amplify® ETFs Announces Launch of Online Retail ETF (NASDAQ: IBUY)
April 20 2016 - 9:30AM
Business Wire
IBUY, the first ETF from Amplify, tracks the
EQM Online Retail Index (IBUYXT)
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.
Index Information
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160420005211/en/
Gregory FCA for Amplify ETFsAmy Lash,
610-228-2806amyl@gregoryfca.com
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