5 ETF Areas & Stocks to Win on Upbeat September Retail Sales
Retail sales in the United States grew 0.7% sequentially in September 2023, following an upwardly revised 0.8% uptick in August and beating forecasts of a 0.3% advance. The data continues to indicate robust consumer spending despite high prices and borrowing costs.
Below, we have highlighted a few areas and the related ETFs that may benefit handsomely.
Health & Personal Care Stores
Sales in this segment increased 8.3% year over year and 0.8% sequentially.
Global X Funds Global X Health ETF BFIT – The underlying Indxx Global Health & Wellness Thematic Index tracks the performance of companies listed in developed markets that provide products and services aimed at promoting physical wellness through active and healthy lifestyles, including but not limited to fitness equipment and technology, athletic apparel, nutritional supplements, and organic/ natural food offerings. The fund charges 50 bps in fees.
Church & Dwight Co. CHD – The company develops, manufactures and markets a broad range of household, personal care and specialty products. The stock has a Zacks Rank #1 (Strong Buy) at present.
Non-Store Retailers
Sales at non-store retailers rose 8.4% year over year in September. Sequentially, sales are up 1.1%.
ProShares Online Retail ETF ONLN – The fund tracks the ProShares Online Retail Index, which is a specialized retail index that tracks retailers that principally sell online or through other non-store channels.
Amazon AMZN – Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. The stock has a Zacks Rank #1 (Strong Buy).
Food Services and Drinking Places
Sales at restaurants and bars increased 9.2% year over year and 0.9% sequentially.
AdvisorShares Restaurant ETF EATZ – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. The fund charges 99 bps in fees.
McDonald's MCD – The company is a leading fast-food chain that currently operates more than 39,000 restaurants in more than 100 countries. The stock currently has a Zacks Rank #3 (Hold).
Grocery Stores
Sales at grocery stores increased 1.6% year over year and 0.4% sequentially.
Consumer Staples Select Sector SPDR ETF XLP – The underlying Consumer Staples Select Sector Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index. The fund charges 10 bps in fees.
Walmart WMT – Walmart Inc. has evolved from just being a traditional brick-and-mortar retailer into an omnichannel player. The stock currently has a Zacks Rank #2.
Motor Vehicle & Parts Dealers
Sales of this category gained 1% sequentially and were up 6.2% year over year.
First Trust S-Network Future Vehicles & Technology ETF CARZ – The fund follows the S-Network Electric & Future Vehicle Ecosystem Index constituents are chosen by selecting the eligible Pure-Play companies in descending order of float-adjusted market capitalization until 100 constituents have been selected.
Group 1 Automotive Inc. GPI – The Zacks Rank #3 company is one of the leading automotive retailers in the world, with operations primarily located in the United States and the UK.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports
First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports
Global X Funds Global X Health (BFIT): ETF Research Reports
ProShares Online Retail ETF (ONLN): ETF Research Reports
AdvisorShares Restaurant ETF (EATZ): ETF Research Reports
