NEW YORK, Nov. 29, 2018 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X E-commerce ETF (Nasdaq: EBIZ). Designed to track the Solactive E-commerce Index, the fund holds a basket of companies from around the world that are positioned to benefit from the increased adoption of e-commerce as a distribution model, including companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and/or selling goods and services online.
E-commerce has existed as a segment of the retail industry for over two decades, but is still in its early stages as a growing trend. As a percentage of total retail sales, e-commerce constitutes only 9.8% of the total available retail market, with over 90% of the sales available for further disruption.i Although 96% of Americans report they already engage in some amount of online shopping,ii there are segments within the retail industry that have yet to see significant e-commerce activity, such as grocery shopping, where only as much as 4.3% of sales currently occur online.iii Additionally, there has also recently been a surge of online shopping growth outside the U.S., with China emerging as a leader in the e-commerce space growing 32% in 2017 with over $1 trillion in total sales.iv
"While e-commerce may seem pervasive, we believe we are still in just the early innings of experiencing its disruptive potential. Extending to additional segments of the US retail market and growing adoption overseas should make e-commerce even more accessible and dominant over brick and mortar business models," said Jay Jacobs, Senior Vice President and Head of Research and Strategy at Global X Funds. "We believe that particularly as Millennial and Generation Z buyers become more of a driving force in the economy and new technologies facilitate even more seamless shopping, purchasing, and delivery, that e-commerce will represent an increasingly significant share of the multi-trillion dollar global retail industry. With the launch of EBIZ, we're thrilled to provide investors with efficient access to another key disruptive trend that has the potential to reshape the global economy."
EBIZ is the twelfth ETF in Global X's multi-billion dollar Thematic Growth suite of ETFs.
Investing involves risk, including the possible loss of principal. The investable universe of companies in which EBIZ may invest may be limited. The companies in which the Fund invests may be subject to rapid changes in technology, intense competition, rapid obsolescence of products and services, loss of intellectual property protections, evolving industry standards and frequent new product productions, and changes in business cycles and government regulation.
International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. EBIZ is non-diversified.
Carefully consider the fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the fund's full or summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting globalxfunds.com. Read the prospectus carefully before investing.
The Solactive E-commerce Index tracks the price movements in shares of companies which are (or are expected to be in the near future) active in the field of E-commerce.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Global X Management Company LLC.
i U.S. Department of Commerce, "Quarterly Retail E-commerce Sales, 3rd Quarter 2018." Nov 19, 2018. ii BigCommerce, "BigCommerce Survey Shows Americans Consider Online Shopping Essential," Jun 6, 2016. iii Forbes, "Online Grocery Sales to Reach $100 Billion in 2025; Amazon is Current and Future Leader," Jan 18, 2018. iv Digital Commerce 360, "Online Retail Sales in China soar past $1 trillion in 2017," Feb 8, 2018.