EQM Indexes will see the first UCITS ETF in Europe track its online retail index having previously had a similar strategy launch in the US.
The Global Online Retail UCITS ETF (IBUY) will list on the London Stock Exchange, Borsa Italiana, and the Deutsche Boerse with a total expense ratio (TER) of 0.69%.
Tracking the EQM Global Online Retail Growth index, IBUY’s basket covers equities deriving most of their revenue from online retail and marketplace activity.
The index itself is revenue-weighted, with an emerging markets exposure cap of 25%, and features trending ecommerce names such as Etsy, Peloton, HelloFresh, and Delivery Hero.
Having previously created the underlying index for a similar strategy listed in the US, IBUY will be marketed and distributed by white-label issuer HANetf.
Commenting on the launch, Jane Edmondson, co-founder and principal of EQM Indexes, said: “The case for online retail has never been stronger. Online retail is the fastest growing segment of retail sales. Competitive pricing, shopping convenience, greater product selection, and rapid delivery have made online retail a disruptive technology that is here to stay.
“US investors have recognized the investment opportunity in online retail stocks and we expect to see similar demand from investors in Europe, Asia and many other countries using UCITS products.
A similar US strategy, the Amplify Online Retail ETF (IBUY), has a TER of 0.65%. The US ETF has returned 19% and seen inflows of $117m during the year-to-date, according to ETFLogic.