1 00:00:01,639 --> 00:00:04,920 Speaker 1: He is taking stock with Kathleen Hayes and Pim Fox 2 00:00:05,080 --> 00:00:10,160 Speaker 1: on Bloomberg Radio. Investing in retail it might not involve 3 00:00:10,280 --> 00:00:14,640 Speaker 1: investing in companies such as Macy's or Nordstrom. It may 4 00:00:14,720 --> 00:00:18,360 Speaker 1: involve retail me not Etsy, grub Hub and eBay. Here 5 00:00:18,360 --> 00:00:20,639 Speaker 1: to tell us more, Christian Magoon. He is the chief 6 00:00:20,640 --> 00:00:25,120 Speaker 1: executive officer and the founder of Amplify Investments. He joins 7 00:00:25,239 --> 00:00:28,160 Speaker 1: us from Wheaton, Illinois. Christian, thanks very much for being 8 00:00:28,200 --> 00:00:30,120 Speaker 1: with me. Great to be back, Pim, thank you for 9 00:00:30,160 --> 00:00:32,760 Speaker 1: having me. Tell tell us a little bit about the 10 00:00:32,880 --> 00:00:37,400 Speaker 1: Amplify I Buy I b U y E t F 11 00:00:38,000 --> 00:00:41,600 Speaker 1: and how it differs from a more traditional E t 12 00:00:41,800 --> 00:00:45,400 Speaker 1: F that focuses on retail, such as the x RT 13 00:00:46,000 --> 00:00:49,879 Speaker 1: that's the SMP retail E t F. Yeah. Absolutely, And 14 00:00:49,960 --> 00:00:52,640 Speaker 1: you know we've seen in the headlines that traditional retailers 15 00:00:52,640 --> 00:00:56,040 Speaker 1: are really feeling the pain, whether we're talking about Macy's 16 00:00:56,680 --> 00:01:02,200 Speaker 1: or Target to recent examples, UM consumers are changing their 17 00:01:02,200 --> 00:01:05,000 Speaker 1: preferences and they're going less and less to brick and 18 00:01:05,040 --> 00:01:08,160 Speaker 1: mortar stores and more and more on to online stores. 19 00:01:08,680 --> 00:01:12,959 Speaker 1: And our online retail et F ticker I buy uh 20 00:01:13,000 --> 00:01:18,039 Speaker 1: focuses on companies retailers that have se or more of 21 00:01:18,080 --> 00:01:21,360 Speaker 1: their revenue coming from online sales, and this is the 22 00:01:21,440 --> 00:01:24,560 Speaker 1: area that's growing in retail. Retail is kind of a 23 00:01:24,600 --> 00:01:27,600 Speaker 1: hated sector, but that's because most people think of these 24 00:01:27,600 --> 00:01:31,520 Speaker 1: traditional brick and mortar companies. UH. What's actually doing very 25 00:01:31,600 --> 00:01:34,200 Speaker 1: well or quite well in the retail space and having 26 00:01:34,280 --> 00:01:38,920 Speaker 1: positive performance are online retailers. And that's really where this 27 00:01:39,080 --> 00:01:43,280 Speaker 1: ETS sets itself apart. It's about eight different in terms 28 00:01:43,280 --> 00:01:46,640 Speaker 1: of its portfolio makeup than a traditional retail if E 29 00:01:46,760 --> 00:01:49,240 Speaker 1: t F for example. So we really think that the 30 00:01:49,600 --> 00:01:53,440 Speaker 1: opportunity going forward and even today is in online retail 31 00:01:53,520 --> 00:01:57,200 Speaker 1: companies and UH, this ETF offers a one stop way 32 00:01:57,200 --> 00:02:00,320 Speaker 1: of accessing UH companies around the world that have that 33 00:02:00,400 --> 00:02:04,880 Speaker 1: revenue source. Christian, are you using the term retail in 34 00:02:04,960 --> 00:02:09,880 Speaker 1: its broadest sense? Because the largest holding, for example, UH 35 00:02:10,120 --> 00:02:13,880 Speaker 1: in recent filing is retail me not, followed by Etsy 36 00:02:13,960 --> 00:02:18,200 Speaker 1: and then grub hub, which is online food ordering site 37 00:02:18,720 --> 00:02:22,920 Speaker 1: eBay which offers not their own products but products from 38 00:02:23,160 --> 00:02:27,240 Speaker 1: third party vendors. So is retail now just a completely 39 00:02:27,440 --> 00:02:32,320 Speaker 1: different UH description because you've got Netflix in there as well. Yes, 40 00:02:32,720 --> 00:02:37,320 Speaker 1: So we categorize online retail into the really three areas 41 00:02:38,000 --> 00:02:42,480 Speaker 1: Traditional retailers UM so companies like a Blue Nile or 42 00:02:42,680 --> 00:02:46,400 Speaker 1: lands In or an overstock or a Wayfair UH companies 43 00:02:46,480 --> 00:02:50,799 Speaker 1: that are selling traditional goods and services via online channels 44 00:02:51,160 --> 00:02:54,160 Speaker 1: and that have sevent or more of their revenue from 45 00:02:54,200 --> 00:02:57,919 Speaker 1: online sales. So that's the largest percentage of the funds 46 00:02:57,960 --> 00:03:01,360 Speaker 1: waiting about fift as a end of June. And then 47 00:03:01,400 --> 00:03:04,880 Speaker 1: the two other areas are marketplace companies within retail. So 48 00:03:04,919 --> 00:03:07,120 Speaker 1: when you think of marketplace, you think of grub Hub, 49 00:03:07,320 --> 00:03:11,800 Speaker 1: ets Ali Baba, Mercado Libre. And then the other last 50 00:03:11,880 --> 00:03:15,840 Speaker 1: area is h the smallest portion of the portfolio travel companies, 51 00:03:15,840 --> 00:03:19,480 Speaker 1: so the price lines of the world trip Advisor. It 52 00:03:19,600 --> 00:03:22,160 Speaker 1: really it's where are people doing their kind of buying 53 00:03:22,160 --> 00:03:25,519 Speaker 1: and selling in the retail space. And we've roddened it out, 54 00:03:25,600 --> 00:03:28,519 Speaker 1: so to speak, to include some of these UM sub 55 00:03:28,600 --> 00:03:33,320 Speaker 1: sectors within retail UM that are really focused on driving 56 00:03:33,760 --> 00:03:37,160 Speaker 1: sales and revenue through the online model. The online model 57 00:03:37,240 --> 00:03:41,520 Speaker 1: just seems to offer better pricing, more selection and convenience, 58 00:03:41,840 --> 00:03:44,360 Speaker 1: and it seems to be trumping kind of traditional bricket 59 00:03:44,360 --> 00:03:48,520 Speaker 1: mortar retail both in terms of consumer preference, in terms 60 00:03:48,520 --> 00:03:50,560 Speaker 1: of its growth, but also in terms of the stock 61 00:03:50,600 --> 00:03:54,240 Speaker 1: performance of these uh kind of unique businesses. Well, just 62 00:03:54,320 --> 00:03:58,320 Speaker 1: to give the return so far in the month, up 63 00:03:58,360 --> 00:04:02,440 Speaker 1: seven percent, the three month return up a little bit more, 64 00:04:03,400 --> 00:04:07,000 Speaker 1: up a little bit more than fifteen per cent. When 65 00:04:07,040 --> 00:04:12,080 Speaker 1: did this start trading? Yes, in April April, the Amplify 66 00:04:12,160 --> 00:04:15,680 Speaker 1: Online Retail et F ticker i by launched on the 67 00:04:15,760 --> 00:04:18,839 Speaker 1: NASDAC as an exchange traded fund. It's an index based 68 00:04:18,880 --> 00:04:22,080 Speaker 1: exchange traded fund, and um, you know it's it's had 69 00:04:22,160 --> 00:04:26,200 Speaker 1: some significant performance. It's gained a little bit more than 70 00:04:26,680 --> 00:04:30,560 Speaker 1: eight percent since it's launched. That compares to, for example, 71 00:04:30,640 --> 00:04:34,279 Speaker 1: the largest traditional retail et S in the marketplace, the 72 00:04:34,360 --> 00:04:38,600 Speaker 1: Spider Retail et F ticker x RT, which during that 73 00:04:38,680 --> 00:04:42,200 Speaker 1: same time period is gained about eighty one basis points, 74 00:04:42,279 --> 00:04:45,000 Speaker 1: or about one per cent. So there's about a hundred 75 00:04:45,080 --> 00:04:48,000 Speaker 1: or eight hundred basis points out performance we're seeing from 76 00:04:48,040 --> 00:04:50,800 Speaker 1: these online retail companies and we really think it's the 77 00:04:50,880 --> 00:04:55,479 Speaker 1: hidden gem in this unloved sector of retail. Now, you 78 00:04:55,760 --> 00:04:58,000 Speaker 1: also in your past, I think it was in two 79 00:04:58,080 --> 00:05:02,279 Speaker 1: thousand six, you start Claymore e t s correct, which 80 00:05:02,320 --> 00:05:05,320 Speaker 1: was then sold to Guggenheim. That's right, So yeah, I 81 00:05:05,400 --> 00:05:08,119 Speaker 1: started the e t F product line at Claymore, which 82 00:05:08,160 --> 00:05:12,200 Speaker 1: is now owned by Guggenheim Investments, and launched about six 83 00:05:12,279 --> 00:05:14,320 Speaker 1: d e t s, many of them first to market 84 00:05:14,320 --> 00:05:16,600 Speaker 1: that we've talked about over time, and you know, we 85 00:05:16,600 --> 00:05:19,599 Speaker 1: were We've been involved in the first cybersecurity e t 86 00:05:19,720 --> 00:05:23,000 Speaker 1: F that launched several years ago, the first solar et FU. 87 00:05:23,200 --> 00:05:25,960 Speaker 1: Variety of different kind of first to markets and that's 88 00:05:25,960 --> 00:05:31,080 Speaker 1: really our our our mission here and amplifies to christ 89 00:05:31,160 --> 00:05:32,640 Speaker 1: I just gotta I just gotta jump in because you 90 00:05:32,680 --> 00:05:33,920 Speaker 1: don't have a lot of time. I just want your 91 00:05:33,960 --> 00:05:36,400 Speaker 1: quick thoughts here. Isn't it also a big challenge for 92 00:05:36,440 --> 00:05:38,640 Speaker 1: you to get some volume on this e t F. 93 00:05:38,720 --> 00:05:41,600 Speaker 1: I mean you're trading like a thousand shares it volume 94 00:05:41,640 --> 00:05:43,960 Speaker 1: on platforms. That's the biggest challenge. Isn't it give you 95 00:05:44,000 --> 00:05:47,600 Speaker 1: that tense right especially during summer that the volume is 96 00:05:47,600 --> 00:05:49,920 Speaker 1: is a tough thing. But we think the performance will 97 00:05:49,920 --> 00:05:53,719 Speaker 1: start to attract that volume. Uh and Uh, we're really 98 00:05:53,760 --> 00:05:56,000 Speaker 1: excited about what the fall is gonna lead to because 99 00:05:56,040 --> 00:05:58,640 Speaker 1: it's great season for retail and we think online retail 100 00:05:58,680 --> 00:06:01,160 Speaker 1: will have an accelerated fall as well. We've got to 101 00:06:01,240 --> 00:06:03,400 Speaker 1: leave it there thanks very much. Christian Magoon he is 102 00:06:03,400 --> 00:06:06,840 Speaker 1: the chief executive and the founder of Amplify Investments. They're 103 00:06:06,880 --> 00:06:10,520 Speaker 1: based in Wheaton, Illinois. This is Bloomberg.