In this note we update performance of our “Death By Amazon” and “Amazon Survivors” indices. The rebound from the COVID shock led to massive outperformance of retail-related stocks like those in our “Death By Amazon” index which made up its entire performance lag versus the broad market since 2012. Since November, that outperformance has trailed off dramatically as “meme” stocks that happen to be in the portfolio trail off and the broad market declines. Since inception, total returns for the DBA are roughly in-line with the overall market.
As for “Amazon Survivors,” since 2016 there’s been significant outperformance that is entirely driven by their performance in the recovery from the COVID drop. Over the past five and a half years, this group of stocks have substantially outperformed the market as a whole. More recently, though, the index has lagged, underperforming the broad market in a manner similar to the “Death By Amazon” index.
Our “Death By Amazon” index was created many years ago to provide investors with a list of retailers we view as vulnerable to competition from e-commerce. In 2016, we also created our “Amazon Survivors” index which is made up of companies that look more capable of dealing with the threat from online shopping. To see how the two indices have been performing lately and view the full list of stocks that make up the indices, please read our newest report on the subject available to Bespoke Premium and Bespoke Institutional members.