Online Retail Monthly Report | January

21 January 2022

 

Online Retail ETF Monthly Report: Key Takeaways

  • Ecommerce Delivered This Holiday Season – According to MasterCard SpendingPulse, U.S. ecommerce sales gained 11% this holiday season, representing a whopping 61.4% gain over 2019 comparisons pre-pandemic. Ecommerce made up 21% of total holiday sales, up from 20.6% in 2020 and 14.6% in 2019, as added convenience continues to drive spend. [1]
  • COVID for Christmas – When it came to UK holiday shoppers, avoiding crowds was the primary concern cited by 32% of shoppers 18 and older, taking priority over quick delivery. [2]
  • One Online Retailer Avoided Supply Chain Issues – Against the backdrop of surging demand and supply chain bottlenecks, U.S. online retailer Etsy remained largely unaffected despite its 4 million sellers in 234 countries. But its platform allows one feature that other ecommerce giants do not, allowing customers to search for products and sellers by location, thus avoiding shipping ports and/or customs. [3]
  • Supply Chain Issues to Fade, but Inflation Will Disrupt – Unless there a big resurgence of the coronavirus, supply chain issues are expected to get back to normal by the second half of 2022. But rising prices due to increased costs and supply chain constraints are not likely to return to normal. [4]
  • Amazon Slips to 4th in Global Shopping Apps – Amazon’s leading position in the U.S. is well-documented, but the latest global app rankings saw it displaced by the rise of several international brands such as Shopee, SHEIN, and Meesho according to the latest data from Apptopia. [5]

Please note that all performance figures are showing net data.

 

Macro Outlook

Global Ecommerce Delivered Double-Digits This Holiday Season

Even with physical stores open, online sales continued to outpace in-store purchases this holiday season. With supply chains constrained, product availability was a big concern for holiday shoppers with 71% of online holiday shoppers citing it as a factor affecting their online purchasing decisions according to PYMNTS, with consumers willing to pay up for merchandise, translating into fewer discounts and higher online retail margins. [6] By the end of the holiday shopping season, selection concerns gave way to safety concerns among last-minute shoppers. [7] Whilst we, EMQ Indexes, observe many online retailers suffered earnings misses last quarter as they failed to successfully navigate peak growth conditions, we believe first quarter numbers are likely to be better than initial expectations due to December’s unexpected COVID surge.

 

Online Retail ETF Performance (As of 31.12.2021)

 

1M

3M

6M

YTD

12M

SI

Global Online Retail UCITS ETF

-13.80%

-23.62%

-33.94%

-29.30%

NA

-29.30%

EQM Global Online Retail Growth Index

-13.75%

-23.46%

-33.68%

-28.88%

-25.51%

-28.88%

Please note that all performance figures are showing net data.Source: Bloomberg / HANetf. Data as of 31/12/2021

Performance before inception is based on back tested data. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. Source: Bloomberg / HANetf. Data as of 31/12/21. Please note that all performance figures are showing net data.

 

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