Tap Into Back-to-School Spending With This Retail ETF

Back-to-school spending is projected to reach a record $146.8 billion this year, according to the National Retail Federation’s Back-to-School Consumer Trends Webinar. That spending will span clothing, electronics, school supplies, dorm furnishings, and other essentials.Key Takeaways Back-to-school spending is projected to reach $146.8 billion this year, including $103.5 billion from college students and their families. Wayfair, Etsy, and Affirm are among the Amplify Online Retail ETF’s (IBUY C+) top holdings that could benefit from different areas of back-to-school spending. IBUY’s portfolio spans online retail, marketplaces, travel, and omnichannel retail. Online Shopping Leads the WayOnline shopping remains the leading destination for back-to-school purchases, according to the NRF survey. Specifically, 50% of K-12 shoppers and 41% of college shoppers plan to shop online this year. Department stores followed at 47% and 33%, respectively, while discount stores came in at 44% and 33%. The trend puts e-commerce companies in focus during one of the year’s biggest consumer-spending periods. It also puts retail ETFs such as the Amplify Online Retail ETF (IBUY C+) in focus. The fund tracks the EQM Online Retail Index, which targets companies that generate significant revenue from online retail business. The index covers four areas: traditional online retail, online marketplaces, online travel, and omnichannel retail. As of September 1, IBUY held 83 securities.Wayfair Taps Into College Back-to-School Spending Wayfair (W) is IBUY’s largest holding at 3.39%. The online home-goods retailer overlaps with several areas of the back-to-school spending cycle, particularly college. Students and families preparing for move-in may need furniture, bedding, storage, and other dorm essentials — all categories that Wayfair offers as products. See More: Amplify Online Retail ETF Rides a Summer Surge in PerformanceEtsy Captures Marketplace ExposureEtsy (ETSY) represents 2.82% of IBUY. Its marketplace model adds another dimension to the ETF’s online retail exposure by connecting shoppers with independent sellers offering personalized accessories, apparel, room décor, and other products. That matters because back-to-school shopping extends beyond standardized school supplies. Consumers also spend on products that reflect their personal style and preferences, giving Etsy exposure to another segment of seasonal spending.Affirm Extends the E-commerce ChainE-commerce doesn’t end when a shopper clicks “buy.” According to the NRF, 20% of shoppers report using Buy Now, Pay Later (BNPL) options to complete purchases. That trend provides another connection to the broader digital-commerce ecosystem. Affirm Holdings (AFRM) represents 2.55% of IBUY. The company provides consumer financing at checkout, giving the ETF exposure to another part of the online-shopping process. That exposure can be particularly relevant for larger purchases, including electronics and dorm furnishings, where consumers may look for ways to spread out payments. For IBUY, Affirm adds a financing component to a portfolio otherwise focused largely on retailers and marketplaces.Back-to-School Season Highlights Digital Consumer Growth Back-to-school spending doesn’t come down to one retailer or category. IBUY spreads its holdings across several parts of the digital-commerce market. As a result, investors don’t have to rely on the performance of a single back-to-school retailer. The fund’s broader portfolio reflects the different ways consumers now shop online. Back-to-school spending won’t determine IBUY’s performance. However, it offers a timely look at digital consumer demand and the companies competing for those dollars. For more news, information, and analysis, visit the Thematic Investing Content Hub. vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for IBUY, for which it receives an index licensing fee. However, IBUY is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of IBUY.