Shop.org and Forrester released their 2008 outlook for online retail sales. The bad news is that the organizations predict slower growth of 17% in 2008 compared to 22% in 2007. The good news, at least for online retailers, is that they are growing faster than traditional retail and are continuing to take share.
From an investor’s perspective, there is no pure play Internet Retail ETF. However, there is an Internet ETF that tracks several of the largest players in online commerce.
First Trust Portfolios’ Dow Jones Internet Index Fund (Amex: FDN) tracks an index of 41 companies that generate at least 50% of their sales from the internet. The top 3 holdings of the market cap weighted fund are eBay (Nasdaq: EBAY), Amazon (Nasdaq: AMZN) and Google (Nasdaq: GOOG). The fund rebalances quarterly and has a net expense ratio of 0.6%.
For more information, see the First Trust website.