This group of retail stocks is crushing the market this year

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Exchange-traded funds focused on e-commerce are the way to play the retail sector without getting burned, some experts say.

Over the last two years, IBUY has tacked on nearly 44% in market value, trouncing the XRT's less than 3% gain. The, which actually bets against physical stores while betting on the rise of online retail, gained almost 36% over the same time period.

"I think, more and more, we're using online purchases. I know the Amazon boxes are showing up at our house all the time," Tom Lydon, editor and proprietor of ETFTrends.com, said in the same "ETF Edge" interview. "I think what Christian's done here is by having a select amount, by having them equal weight, you're not taking any big bets.", Magoon said it seizes on the same idea, and he acknowledged its relative success.

"There's sentiment in the brick-and-mortar [space] that goes way too far over. CLIX shorts it and has profited at times from it," Magoon said. His bottom line? E-commerce growth is "not just happening in the U.S., it's happening around the world. Growth is about 20% on average in the online retail space."

 

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