Retail ETF (XRT) Hits New 52-Week High
For investors seeking momentum, SPDR S&P Retail ETF XRT is probably on radar now. The fund just hit a 52-week high and is up about 35% from its 52-week low price of $37.72/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:
XRT in Focus
This ETF focuses on the retail corner of the broad consumer space in the U.S. market. It has a definite tilt toward small-cap stocks, with key holdings in specialty retail, Internet & direct marketing retail and department stores. It charges investors 35 basis points a year in fees and has a spread out exposure across various components (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail sector has been an area to watch lately given booming online sales, and strong sales from clothing and departmental stores. This is especially true as rounds of upbeat data underscore the economy's strong fundamentals and consumers’ enthusiasm to spend more. The massive $1.5-trillion tax cut and deregulation are also boosting confidence among consumers. The twin effects are creating a wealth effect, making the consumer segment a great place to stay invested in.
More Gains Ahead?
Currently, XRT has a Zacks ETF Rank #1 (Strong 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 some promise for those who want to ride this surging ETF a little further.
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SPDR-SP RET ETF (XRT): ETF Research Reports
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