5 ETF Areas to Play for Easter
As the clock ticks for Easter this Sunday, shoppers begin their search for chocolate bunnies and various spring-related products to celebrate.A survey conducted by NRF and Prosper Insights & Analytics reveals that 81% of people intend to observe the holiday, anticipating expenditures totaling $22.4 billion, marking it as the second-highest spending forecast in the history of the Easter survey.
Easter, a time of renewal and celebration, also generates solid sales for various sectors of the economy. As investors look for opportunities to capitalize on seasonal trends, there are a few areas that might see a spring-up in sales around this holiday.
These investing areas include Confectionery and Food Production, retailers, consumer discretionary space and vacation providers.
Let’s delve a little deeper:
Confectionery and Candy
Easter is synonymous with chocolate bunnies, eggs, and an array of sweet treats. Companies specializing in confectionery and food production often see a spike in sales during this period. About 89% of population would like to indulge on candies versus 87% recorded in 2019 (which indicates a pre-pandemic timeframe), per NRF. First Trust Nasdaq Food & Beverage ETF FTXG puts about 7% assets in chocolate maker Mondelez International and about 4% in another candy maker Hershey.
Retail
Retailers, especially those with a strong online presence, tend to benefit from the Easter shopping spree as consumers purchase gifts, decorations, and supplies for celebrations. Companies that have diversified their inventory to include Easter-related products, from baskets to home decor, can see an uptick in sales.
About 49% of people who will celebrate the event will go for clothes shopping, up from 46% in 2019. About 62% people who will be engaged in gifts shopping, up from 59% in 2019.
SPDR S&P Retail ETF XRT, which invests 22.29% in apparel stocks, should be benefitted from this trend. The fund also invests 20.16% in Other Specialty Retail.
Restaurants
Easter celebration means gatherings. People hit restaurants for Easter celebrations, engaging in various dining experiences that range from family meals to brunch specials. Restaurants sometimes offer special menus that include brunch classics, barbecue, and seafood smorgasbords.
About 89% of celebrators would shell out on food this year, up from 85% seen in 2019. Some of restaurants known for easter menu include Bob Evans Restaurants, McDonalds and Cracker-Barrel Old Country Store. AdvisorShares Restaurant ETF EATZ should thus gain in prices this Easter.
Decorations, Greeting Cards & Other Easter-Related Shopping
About 48% of people would be involved in decorations (up from 41% in 2019), which should give a boost to stocks like Home Depot and Wal-Mart. About 43% will buy flowers, up from 38% recorded in the pre-pandemic year 2019. These stocks have a solid exposure toVanEck Retail ETF RTH and iShares U.S. Consumer Focused ETF IEDI.
Entertainment Areas, Travel and Hospitality
Easter marks a period when families spend on activities and outings. Companies in the entertainment sector, such as theme parks and family-friendly destinations, can see increased attendance.
Disney, with its theme parks and entertainment options, often sees more visitors during holidays like Easter. Meanwhile, as a holiday that encourages family gatherings, Easter can lead to a spike in travel, benefiting airlines, hotels, and online booking platforms. Disney-Airbnb-heavy fund ALPS Global Travel Beneficiaries ETF JRNY is a lucrative bet in this context.
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SPDR S&P Retail ETF (XRT): ETF Research Reports
VanEck Retail ETF (RTH): ETF Research Reports
First Trust NASDAQ Food & Beverage ETF (FTXG): ETF Research Reports
iShares U.S. Consumer Focused ETF (IEDI): ETF Research Reports
AdvisorShares Restaurant ETF (EATZ): ETF Research Reports
ALPS Global Travel Beneficiaries ETF (JRNY): ETF Research Reports
