BetaShares to add online and eCommerce ETF to leading thematic range

BetaShares to add online and eCommerce ETF to leading thematic range

Australian fund manager BetaShares have announced the addition of the BetaShares Online Retail and eCommerce ETF (IBUY) to its leading range of thematic funds.

Significant technology innovations, faster internet speeds, better delivery infrastructure and more secure payment methods are creating the perfect storm for online retailing and e-commerce. Already growing strongly prior to the COVID-19 pandemic, the megatrend of online shopping and e-commerce has been further accelerated in recent years.

The BetaShares Online Retail and E-Commerce ETF (IBUY) will be an Australian-first, providing exposure to up to 100 leading global e-commerce companies. To qualify for inclusion, companies must derive at least 65% of revenues from one of three online retail business segments:

  • Online Retail – electronic or virtual commerce which allows consumers to buy goods or services directly over the internet.
  • Online Travel – online booking of travel or travel-related services over the internet.
  • Online Marketplace – online platform in which consumer transactions are processed by the marketplace operator and then delivered and fulfilled by participating retailers, restaurants, or wholesalers.

IBUY’s index constituents currently include global powerhouses such as Amazon, PayPal, Ebay, Tencent and Alibaba as well as vertical specialists such as Airbnb, Spotify and HelloFresh.

The launch of IBUY comes as the thematic ETF category has continued to grow strongly on the back of strong investor demand. IBUY will join 10 other ETFs in BetaShares’ market leading suite of thematic ETFs which collectively hold $2.2 billion in assets.1

BetaShares CEO, Alex Vynokur, said online retailing and e-commerce continues to change the way consumers buy their favourite goods and services.

“IBUY will offer investors convenient access to a diversified portfolio of global online retailing leaders that are revolutionising the way consumers shop for goods and services. Even as the global economy reopens, more consumers than ever before are buying their goods and services online. This trend is set to continue as people seek out more convenient ways to access the latest goods and services from around the world,” Vynokur said.

“IBUY is the latest addition to our market leading suite of thematic ETFs that offer investors exposure to high conviction megatrends that are changing the world around us. We are proud to offer the most extensive range of thematic ETFs in the Australian market and are well advanced in our plans to expand our offering in this growing space throughout 2022,” Vynokur concluded.

Subject to regulatory approvals, IBUY is expected to start trading on the ASX on 16 February 2022.

1. Source: ASX + ChiX data. Data correct as of December 2021.