Investors who are interested in e-commerce stocks, but don’t know where to begin, have a new option to consider. The John Nuveen Company (NYSE: JNC) now offers an “E-Commerce Sector Portfolio” that consists of 35 stocks. Investors can buy into the defined portfolio for a minimum initial purchase of $1,000 (US$).
In an interview with the E-Commerce Times, Bill Adams, managing director for Nuveen Defined Portfolios, explained how the fund came about. “There has been an enormous amount of investor interest in e-commerce stocks. Clients are asking, ‘What should I buy? Where should I invest?’ and financial advisers are finding it difficult to pick just one or two stocks. The market has been screaming for a solution. People want the ability to buy a whole basket of stocks that represent the e-commerce market.”
To meet the demand, Nuveen worked with experts who understand the breadth of e-commerce. “It’s not just about Amazon.com,” Adams said.
Instead, the portfolio is diversified across the e-commerce sector, including web-based retailers, Internet portal companies, e-commerce solution companies, and established retailers who are developing a strong Web presence.
Given the market volatility of many of these stocks, Nuveen recommends the E-Commerce Portfolio be considered an aggressive growth investment. It is structured as a buy-and-hold investment, for five years.
Keep in mind that Nuveen’s E-Commerce Portfolio includes a fixed selection of stocks, known as a “defined portfolio” or unit trust. Unlike a mutual fund, it remains unmanaged until maturity. That means that there isn’t a manager making daily buy and sell decisions.
Active investors who like to take charge of their investments may see this as a negative. However, for an easy way to invest in one of today’s hottest markets, without doing alot of your own research, the e-commerce portfolio is certainly an option.
The portfolio was launched January 15th, and is available only through registered representatives.
About John Nuveen & Co.
Founded in 1898 and based in Chicago, Nuveen specializes in investment management products and services. The company manages or oversees $66 billion in managed accounts, mutual funds, exchange-traded funds and defined portfolios. For additional information about the E-Commerce Portfolio, visit www.nuveen.com