SAN DIEGO, CA--(Marketwired - Jan 14, 2016) - EQM Indexes LLC, ("EQM Indexes"), a San Diego-based provider of index benchmarks for Exchange Traded Products (ETPs), has launched an index that tracks the online retail market segment. The IBUYXT Index (the "Index") tracks the combined performance of a basket of 40 to 50 global stocks that derive significant revenue from online retail and virtual commerce including the online retail, online marketplace and online travel market segments.
Some of the recognizable U.S. companies in the index are Amazon, EBay, and Priceline. However, the index also includes many global names U.S. investors may not be familiar with such as Rakuten, which operates the largest marketplace e-commerce site in Japan, and Zalando, a German online retailer of fashion accessories.1
In order to be eligible for inclusion in the Index, companies must derive at least 70 percent of their revenues from online or virtual business transactions as opposed to brick and mortar and/or in-store transactions. The Index will also offer exposure to non-U.S. companies, with a maximum of 25 percent exposure to non-US stocks at time of purchase.
"The mall isn't dead, it has just moved online." - Jane Edmondson, EQM Indexes
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Jane Edmondson, co-founder of EQM Indexes, said: "We are proud to offer this global index that specifically tracks online retail, a fast growing segment of retail sales. In our opinion, competitive pricing, shopping convenience, greater product selection and rapid delivery have made online retail a disruptive technology that is here to stay."
Why an online retail index?
In our view, an online retail index is timely and serves as a needed benchmark because:
1. Growing Global Opportunity - While growth has slowed for traditional brick and mortar retailers, online retail continues to exhibit strong growth characteristics, gain market share, and expand globally.
2. Expanding Internet and Mobile Penetration - While 40 percent of the global population currently has Internet access, that level is expected to reach 50 percent by the end of 2015 thanks to smart mobile devices that enable consumers to shop online anywhere and anytime.
3. Technological Advancement - In our view, innovations such as electronic payment, rapid delivery by drone and virtual reality enhancements such as virtual showrooms and 3D display of merchandise will continue to improve the online shopping experience and drive future expansion and growth.
Index Information
IBUYXT, is a modified equal-weighted index of approximately 40-50 global companies 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 symbol "IBUYXT" can be accessed via Bloomberg, Reuters, and other financial data providers. Investors may not make direct investments into any index. Additional information about the index can be accessed from EQM Indexes's dedicated website at www.eqmindexes.com.
EQM Indexes LLC has licensed its Online Retail Index exclusively to ETF provider Amplify Investments.
About EQM Indexes LLC
EQM Indexes, LLC is a woman-owned firm dedicated to creating and supporting indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 24 years of investment industry experience, EQM Indexes' index designs spans a wide range of asset classes and financial instruments. EQM Indexes does not provide investment advice, nor offer the sale of securities, but does partner with issuers and works jointly with other index firms to provide benchmarks for Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and other similar products. Follow us on Twitter @eqmindexes
1 The companies referenced herein are for illustrative purposes only. The IBUYXT Index may or may not include these companies at any given time. This is not a comprehensive list of the companies the IBUYXT Index may track. Past performance does not guarantee future results.