With the housing market coming back and unemployment slowly trending lower, many are starting to feel better about the economy. This has caused many to open up their pocketbooks and spend in droves.
Unsurprisingly, this trend has filtered through to the retail industry, as many companies in this sector have seen solid performances in the year-to-date period. And with strong retail sales figures and booming consumer confidence numbers, many think that this trend can continue (see the Guide to Retail ETFs).
While targeting individual retail names could be a way to go, investors can also take a retail ETF approach as well. This technique allows investors to achieve wide exposure across the space and prevent concentration in any one corner of the retail market.
Best of all, the segment is also highly ranked from a Zacks ETF Rank perspective, as a few funds have ETF Ranks of 1 or Strong Buy. Thanks to this, we are expecting these retail ETFs to outperform in the near term, and lead other sectors higher as we approach the summer months (also see the full list of Top Ranked ETFs).
For investors seeking to apply this approach to their portfolio, consider watching our short video below on retail ETFs. In it, we discuss in greater detail some of the trends in the market, and the key differences between some top ranked funds in the space:
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