For investors seeking momentum, VanEck Vectors Retail ETF RTH is probably on radar. The fund just hit a 52-week high, and is up roughly 28.6% from its 52-week low price of $87.11/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
RTH in Focus
This fund offers exposure to the most-liquid companies involved in retail distribution, wholesalers, on-line, direct mail and TV retailers, multi-line retailers, specialty retailers, and food and other staples retailers. It is highly concentrated on Amazon AMZN at 20.1% share while other firms hold no more than 10.74%. The ETF charges 35 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail corner of the broad consumer discretionary sector has been an area to watch lately given the upcoming Amazon Prime day on Jul 15, which is set to be a record-breaking event for Amazon. This will provide a huge boost to the retail stocks as other retailers are also offering discounts and promotions on Prime day.
More Gains Ahead?
Currently, RTH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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