This thematic ETF tracks the EQM Online Retail Index and is made up of stocks of companies that derive a large share of their revenue from online retail worldwide. In addition to US-listed stocks, it also holds overseas e-commerce companies through depositary receipts (ADRs and GDRs).

It suits thematic investors who want diversified exposure to the growth of the e-commerce and online retail industry.

It is a passively managed (index-tracking) ETF run by Amplify.

The fund holds online retailers whose revenue share meets the index inclusion criteria, tracking the performance of the e-commerce industry. It covers a broad range of companies, from large US retailers to overseas-listed online platforms, a structure that helps reduce concentration in any single country or individual stock.

• Coverage extends to global online retail companies
• Exposure to overseas e-commerce through depositary receipts

Assets under management (AUM) stand at $128.8M, and the expense ratio is 0.65% per year.

Compared with ONLN, a fund in the same category, it differs in holdings composition and in how it diversifies by region, so the portfolio character is somewhat different.

The fund has shown considerable volatility depending on e-commerce industry conditions and the earnings releases of individual retailers, and it tends to react sensitively to changes in consumer sentiment and the interest rate environment.

Fund flows move in and out depending on investor interest in the online retail theme, and trading volume and attention tend to rise together around the release of consumer-related indicators and during retailer earnings seasons.

Its strength is concentrated exposure to the growth of the e-commerce industry, while its weakness is that it is heavily influenced by the earnings volatility of individual retailers.

ONLN, shown in the table, is a comparable fund in the same online retail category, and it differs in holdings composition and fund manager, so the portfolio character is different. If you want a long/short structure that bets on the relative performance of online versus offline retailers, you could also consider CLIX. If you want to broaden exposure to the internet industry as a whole, consider FDN, and if you want broad exposure across the consumer discretionary sector, XLY is another option. At the individual stock level, the weighting of AMZN, the leading e-commerce stock, can serve as a useful reference.

Here are the points to review before investing in IBUY. Given the nature of a thematic, concentrated ETF, it is worth checking in advance its volatility, the degree of diversification across holdings, and the currency impact of holding overseas stocks.

The online retail industry's characteristic earnings volatility and sensitivity to the consumer cycle are the main risk factors. Because of its thematic, concentrated nature, losses can be larger during broad market corrections.

It is a thematic ETF suited to investors who want concentrated exposure to the global e-commerce industry. It is best for long-term investors who can tolerate volatility, and comparing it with a similar product, ONLN, is recommended.