E-commerce ETF and E-commerce Fund: Two Investments to Profit from Guaranteed Growth
Sam Subramanian PhD, MBA
During times when sustained growth of the U. S. economy appears less than certain, e-commerce ETF and e-commerce fund represent two investments that can deliver solid gains from virtually assured growth of the e-commerce industry.
According to Forrester Research, the U. S. e-commerce industry grew 12.6% in 2010 to $176 billion. The market research firm expects the U. S. e-commerce industry to expand by 60% to $279 billion in 2015.
The growth of e-commerce in retailing & entertainment, advertising, and travel can support the industry's expansion.
E-commerce Stocks in Retailing & Entertainment
The number of consumers shopping online is increasing as unemployment levels rise, transportation costs soar, and e-retailers provide incentives like free shipping. Smartphones and tablet computers are the most popular items sold online.
Improvement in download speed and reliability is prompting increasing number of consumers to fulfill their entertainment wants online. Purchases or renting of books, music, video, and games are rapidly moving online.
Amazon.com (AMZN) and eBay (EBAY) are dominant online retailers while Netflix (NFLX) has entrenched itself in online movie delivery. Groupon, which is reshaping e-commerce with short-life discount coupons from local stores, has filed an S-1 with the intent of becoming public.
E-commerce Stocks in Advertising
Online ad spending in the U. S. is poised for strong growth as more people spend more time online. eMarketer forecasts ad spending to increase by over 20% to $31 billion in 2011 as new formats like video and new channels like mobile and social media gain adoption.
While search accounts for a major share today, growing popularity of video and brand-building ads is helping display ad spending to power ahead. Spending on display ads is expected to exceed spending on search ads by 2015.
Investment opportunities here include shares of search leaders Google (GOOG), Yahoo! (YHOO), and Microsoft (MSFT). Smaller service providers like ValueClick (VCLK) represent potential takeover plays. Facebook and LinkedIn (LNKD) are capitalizing on the growing popularity of social media.
E-commerce Stocks in Travel
eMarketer estimates online sales of leisure and unmanaged business travel in the U. S. will increase 8.5% this year on higher airfares, hotel rates, and ancillary fees. Nearly 11.8 million new users are forecasted to make their travel booking through mobile devices.
Overseas, online airline ticket purchases and hotel reservations are increasing at a breakneck pace. Growth is notably strong in China, South Korea, Brazil, Russia and India from both increasing domestic and international travel.
Online travel and related services companies like Expedia (EXPE), priceline.com (PCLN), and to a lesser extent Orbitz Worldwide (OWW) stand to benefit from the increase in online bookings.
Investing in E-commerce ETF and E-commerce Fund
E-commerce ETF Examples
First Trust DJ Internet Index ETF, FDN
PowerShares NASDAQ Internet, PNQI
E-commerce Fund Examples
Fidelity Select IT Services, FBSOX
Fidelity Select Software, FSCSX
Firsthand Technology Opp Fund, FTEQX
Internet UltraSector ProFund, INPIX
Jacob Internet, JAMFX
Kinetics Internet, WWWFX
Rydex Internet, RYIIX
You can profit from the e-commerce industry's growth by investing in e-commerce stocks mentioned above. However, investing in an individual e-commerce stock carries company-specific risk. You can reduce such risk by investing in e-commerce sector ETFs and sector mutual funds. E-commerce ETF and e-commerce fund examples are provided in the inserts.
Beat the Market with Best E-commerce ETF and E-commerce Fund Investments
While secular growth characteristics make e-commerce ETF and e-commerce fund investments suitable for long-term investing, you can use such investments as part of a broader sector investing strategy to earn bigger rewards.
Like most sector investments, e-commerce ETF and e-commerce fund investments periodically come in and go out of favor based on investor’s view of near-term prospects for e-commerce stocks.
AlphaProfit's Premium Service helps you invest in the best e-commerce ETF and the best e-commerce fund at the right time. When the timing is just not right for e-commerce ETF and e-commerce fund investments, you will stay away from them and invest in only the best sector ETFs and
best sector mutual funds in top ranked sectors.
The sector ETF and sector fund model portfolios use AlphaProfit's proven ValuM investment process for selecting investments. This process has enabled AlphaProfit model portfolios to bag Dow Jones Hulbert Financial's #1 rank numerous times.
A dollar invested in the AlphaProfit's Aggressive Growth (ETF-Focus) and Capital Appreciation (ETF-Core) model portfolios is worth $47.97 and $24.49, respectively. This implies annualized returns of 19.7% and 16.0%, respectively.
Performance of ETF model portfolios as of June 30, 2015.
Sign up for ETF Newsletter
Comparable investments in the Dow Jones Wilshire 5000 and S&P 500 benchmarks are worth $6.85 and $6.72, respectively implying annualized returns of 9.4% and 9.3%, respectively.
Learn 5 Smart Ways of Using Sector ETFs and Sector Funds
Sign up for AlphaProfit’'s Free ETF Newsletter MoneyMatters and receive your Free Report on 5 Smart Ways of Using Sector ETFs and Sector Funds.
Protect & grow your wealth with
investment recommendations from free e-letter
By Hulbert #1 rank winner Dr. Sam Subramanian
'Incisive Insights, Impressive Results' - Jim Woodruff
About AlphaProfit MoneyMatters and AlphaProfit
AlphaProfit MoneyMatters is a free e-letter distributed to registered users of AlphaProfit's website. The e-letter analyzes the economy, markets, and sectors and provides money-making insights on stocks, exchange-traded funds, and mutual funds.
AlphaProfit MoneyMatters is edited by Dr. Sam Subramanian acclaimed for his financial acumen and analytical skills.
AlphaProfit Investments, LLC is an independent investment research firm based in Sugar Land, TX. AlphaProfit publishes the AlphaProfit Sector
Investor's Newsletter, edited by Dr. Sam Subramanian. Leveraging sector funds, the Newsletter provides high-performance model portfolios
with Fidelity funds and exchange-traded funds.
It also includes actionable stock recommendations. This newsletter features among MarketWatch's top 10 investment newsletters and has won
the coveted #1 rank from Hulbert Financial
Copyright Policy and Fair Use Guide
You are welcome to quote a short excerpt of the article not exceeding 100 words with attribution in the form of a hyperlink to the article's
full URL or http://www.alphaprofit.com. If you wish to republish the article in full on
your website, blog, or other media, you must obtain permission.
AlphaProfit MoneyMatters™ is for information purposes only. Nothing herein should be construed as an offer to buy or sell securities or to give individual advice on investing. Factual material is obtained from sources believed
to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from any
of the investment companies, brokers or entities connected with the securities mentioned herein. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at
www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of the AlphaProfit MoneyMatters.
This page is best viewed in 1024 by 768 pixels screen resolution or higher.
Copyright © 2011 AlphaProfit Investments, LLC. All rights reserved.