Reasons to be Cheerful… Part Two
It is increasingly clear that ecommerce is by far and away the biggest winner in this crisis.
The reality is that COVID-19’s impact on our ways of living and working has dramatically accelerated the trend towards ecommerce. Widespread adoption of the services and platforms offered by companies in Dominion’s Ecommerce Fund has helped people to continue shopping for the products they love. It has let them revolutionise the way they work. It has provided them with entertainment during lockdown and quarantine. There is no denying that these companies have offered consumers (and investors) real value during the crisis.
The chart above shows the relative performance of Dominion’s Ecommerce Fund against the MSCI World Index. As you can see, it makes for pleasant viewing. So far, the Fund has outperformed the market by 11% in 4 months. The long-term upside from this trend is very exciting, and its outperformance is likely to continue through 2020 and 2021. Many consumers who were pushed onto ecommerce platforms through necessity over the last few months will have discovered the savings they can offer on price and convenience, suggesting that the ecommerce megatrend will continue to power ahead.
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