Solactive has launched the Solactive-ProShares Bricks and Mortar Retail Store Index, which tracks US retail companies that rely principally on in-store sales. The recently-launched ProShares Decline of the Retail Store ETF (EMTY US) provides inverse exposure to the index.

The index tracks the performance of US companies in the retail sector that generate more than 75% of revenue from in-store transactions.

Solactive sates the index will allow investors to monitor the decline of US companies in the retail sector that generate the majority of their revenues from in-store sales. Timo Pfieffer, head of research at Solactive, commented: “The growth of e-commerce is changing the shopping habits of consumers. The starting point has been books and movies some 20 years ago, while by now, pretty much everything can be ordered online and delivered to the doorstep.

“As a consequence, many companies have adapted their business models to these new preferences and have become more digital. The Solactive-ProShares Bricks and Mortar Retail Store Index seeks to capture the performance of those retail stores that generate the largest part of their revenues in traditional, physical stores.”

The starting universe for the index includes companies domiciled and listed on a US stock exchange with a market capitalisation of at least $500 million and six-month average daily volume greater than $1m. To be included in the index, at least 50% of global revenues must come from retail operations, of which 75% must be generated from in-store sales.

As of 15 November, the index was composed of 56 companies that included department stores, supermarkets and sellers of apparels, consumer electronics and home improvement items. Examples of constituents comprise brands such as Macys, Sears, Gap, and Tiffany.

Michael Sapir, co-founder and CEO of ProShares Advisors, commented: “The rise of e-commerce, and Amazon in particular, is fundamentally reshaping the US retail sector. Shoppers are moving out of the aisles and onto the internet. Investors, corporate decision-makers and others need tools to understand the impact of this consequential shift in our economy. This new index gives them a daily snapshot of the health of retailers that derive a very high percentage of their sales from in-store transactions.”