Online retail ETF tanks as ecommerce giants Wayfair, Etsy, and eBay sell-off
izzetugutmen/iStock via Getty Images The ProShares Online Retail ETF (NYSEARCA: ONLN ) has been crushed in early Thursday trading; the exchange traded fund is down 7.5% as many ecommerce giants that construct the fund are down more than 15%.
ONLN has a total of 40 holdings but three names specifically eBay (NASDAQ: EBAY ), Etsy (NASDAQ: ETSY ), and Wayfair (NYSE: W ) represent a combined 10.92% of ONLN. Moreover, these names all find themselves down significantly on the day, dragging down ONLN. EBAY is -9.5%, ETSY has dropped 15.2%, and W has plunged 18.1% at the start of trading.
All three stocks sit inside of ONLN’s top ten holdings with EBAY as the third largest holding at 5.85%. ETSY has the seventh largest stake at 2.58% and W is the funds ninth most significant position at 2.49%.
ONLN is a thematic fund attached with a 0.58% expense ratio, additionally the fund intends to offer the investment community exposure to a group of stocks that are fundamentally disrupting the retail sector through the adaptation of online retail and ecommerce.
Furthermore, adding to the selling fuel is JD.com ( JD ) and Pinduoduo ( PDD ), ONLN’s fourth and fifth largest positions with a combined 7.22% weighting. The Chinese online firms have dropped on Thursday as U.S. authorities added 80 firms, including JD and PDD to a list of organizations facing a possible delisting from its exchanges.
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