Let’s discover e-commerce ETFs together with a detailed analysis and the characteristics of these products.
The world of e-commerce in 2023 is a global battleground, with major markets competing for the most revenue. This article presents an overview of e-commerce investment opportunities for 2023, focusing on e-commerce ETFs that are gaining traction in this growing market. We’ll find out which ETFs are dominating the financial landscape and how investors can take advantage of this dynamic to grow their portfolios.
Is e-commerce worth it?
In the growing e-commerce world of 2023, global markets are vying for top spots in terms of revenue. Asia emerges as the clear leader, with an impressive volume of $1.7 trillion, followed by the Americas, with $984.39 billion, signaling the robustness of the sector in the Western Hemisphere. In this context of global competition, Amazon stands as a true powerhouse in the world of e-commerce, with a market capitalization of approximately $857 billion at the end of 2022. In second place we find the commerce platform digital Alibaba.com, with a market capitalization of $233 billion, demonstrating the global presence and growing importance of the sector. In this article, we will review the best e-commerce ETFs of 2023, offering an overview of the leaders of this ever-growing market.
Therefore, investing in e-commerce, especially using safe tools like ETFs, is definitely worth it.
The ETFs that dominate the e-commerce market 2023
Let’s now analyze in detail two of the best ETFs on the Italian Stock Exchange:
1. L&G E-commerce Logistics UCITS ETF
The L&G E-commerce Logistics UCITS ETF appears to be an attractive choice for investors looking to expose their portfolio to the e-commerce sector. Here are some relevant key points about the ETF:
1. Solactive eCommerce Logistics Index Tracking: This ETF tracks the performance of the Solactive eCommerce Logistics Index, which includes companies active in the e-commerce industry.
2. Competitive Costs: The ETF has an annual total expense ratio (TER) of 0.49%, making it relatively cheap to own. Lower costs can increase long-term returns for investors.
3. Total physical replication: Total physical replication means the ETF purchases all components of the underlying index. This increases the transparency and efficiency of the ETF, as investors know exactly what they are investing in.
4. Accumulation and reinvestment of profits: Profits from the companies contained in the ETF are accumulated and reinvested. This helps maximize the investment’s growth potential over time.
5. Stability story: With assets under management of €267 million and a launch date of January 2018, the ETF is well established.
7. Positive Performance: What makes this ETF attractive is that it has shown positive results over the years, with a return of +8.41% in the current year. However, the 1-year volatility of 16.55% indicates some degree of risk. The balance between return and risk appears to be reasonable, but investors should consider their own risk tolerance before investing.
Overall, the ETF appears to be an attractive choice for those who believe in the growth potential of the e-commerce industry and want to diversify their portfolio efficiently and economically. However, as with any investment, it is important to conduct thorough research and evaluate your financial situation before making a decision. Overall, this ETF offers potential investors an opportunity for exposure to the e-commerce sector with a legal structure transparency, and a track record of positive performance.
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2. HANetf EMQQ Emerging Markets Internet & Ecommerce UCITS ETF
The HANetf EMQQ Emerging Markets Internet & Ecommerce UCITS ETF offers an attractive investment opportunity for those looking to expose their portfolio to emerging markets in the Internet and E-commerce sector. This ETF tracks the EMQQ Emerging Markets Internet & Ecommerce index, which includes companies active in these sectors in emerging markets.
A notable aspect is the overall expense ratio (TER) per year of 0.86%, which is decidedly high. The total physical replication of the underlying index, with the purchase of all components, instead offers a high degree of transparency and precision in the performance of the ETF. Accumulating and reinvesting dividends within the ETF can help maximize your overall return.
However, it is important to note that this ETF features an annual volatility of 28.37%, reflecting a significant level of risk. The reward for risk suggests the ETF may not be suitable for all investors, but for those willing to tolerate some volatility, it could represent an attractive opportunity.
Looking at the performance, the YTD return is -0.75%, but it should be kept in mind that this ETF can show significant fluctuations in the short term. Overall, the HANetf EMQQ Emerging Markets Internet & Ecommerce UCITS ETF offers a unique entry route to emerging markets in the Internet and E-commerce sector, with a long-term focus. Investors should carefully weigh their risk tolerance level before considering this product.
Outlook: China will dominate the $5.3 billion market
According to Statista, the e-commerce market is experiencing extraordinary growth. In 2023, revenues are expected to reach an impressive $3.64 trillion, with a compound annual growth outlook (CAGR) of 11.17% expected over the period 2023 to 2027. China is set to dominate the market, contributing significantly with an expected market volume of $1.319 billion in 2023. The number of users in e-commerce is expected to reach an astonishing figure of 5.3 billion by 2027, with a growing penetration of 66.6%. With an average revenue per user (ARPU) of $827.40, there is ample opportunity for growth and profit in this ever-evolving industry.
| Disclaimer The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them since he alone knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings. |
Original article published on Money.it Italy 2023-10-23 06:04:00. Original title: I migliori ETF per investire nell’e-commerce
