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A Sumptuous ETF Meal for Thanksgiving

Wall Street may be on a tumultuous ride right now. But we are just a day away from Thanksgiving, which kicks off the holiday season — a period which can set things right for the stock market especially with an estimated 164 million expected to shop. Per NRF, holiday retail sales in November and December are expected to rise 4.3-4.8% year over year in 2018.

Like every year, most Americans are now busing setting up dinner tables to enjoy celebratory meals as well as vacations with family and friends. Things have been developing positively thanks to cheaper gas prices and an improving job market. Per analysts, gas prices declined 20 cents or more from a month ago. All these should help in laying a generous Thanksgiving spread.

How Pricey Will Thanksgiving Meal be This Year?

The average cost of this year’s Thanksgiving feast is$48.90, down 22 cents from last year’s average, according to the American Farm Bureau. The cost is also the lowest in eight years. Even the main item of the event, the turkey, is the cheapest since 2014 on the retail level. Prices for milk, fresh sweet potato, canned green pea and dinner-roll prices have also been trending down. So, one can expect copious consumption of Turkey this year.        

What About Travel & Hotel Demand?

More than 54 million Americans will go on a vacation this Thanksgiving, up 4.8% year over year and the highest number since 2005, per AAA. A record 30.6 million passengers will likely fly on U.S. airlines over the 12-day long Thanksgiving period, up from the estimated 29 million passengers recorded last year, per Airlines for America (A4A). Airlines are catering to this rise in demand by adding 158,000 more seats in business each day (read: Will Airlines ETF Keep Gaining Altitude Ahead?).

The average price of hotels rated by AAA as three diamond fell 6% a night, though hotels rated two diamond has seen a rise of 6% in room rates. At $63, the average daily car rental is 10% lower than last year.

All in all, food and beverage as well as travel-related companies are on their way to make the most of this Thanksgiving. This is a key business-boosting occasion for these stocks and related ETFs. Let’s take a look at the ETFs that investors can stuff in their portfolio for some short-term gains this Thanksgiving.

U.S. Global Jets ETF (JETS)

The fund tracks the performance of Airline Companies across the globe with emphasis on domestic passenger airlines. It charges 60 bps in fees.

Invesco Dynamic Food & Beverage Portfolio PBJ

This product offers exposure to stocks that are engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. PBJ charges 63 bps in fees (read: ProShares Brings Pet-Friendly ETF).

VanEck Vectors Retail ETF (RTH)

Grocery sales are likely to pick up this Thanksgiving. Walmart Inc. WMT is investing in home delivery with Deliv and other partners to retain its place as the country’s biggest grocer and to capitalize on the occasion. So, investors can definitely keep track of Walmart-heavy ETFs like RTH. Also, holiday season buying makes it important to maintain focus on retail ETFs.

VanEck Vectors Agribusiness ETF (MOO)

This fund gives investors exposure to the overall performance of the global agribusiness industry. The United States makes up over half of the basket. MOO charges 54 bps in fees.

First Trust NASDAQ Global Auto Index Fund CARZ

The fund is designed to track the performance of the largest and most-liquid companies engaged in manufacturing of automobiles. It charges 70 bps in fees (read: Brexit Draft Deal Makes These Sector ETFs a Must-See).

VanEck Vectors Gaming ETF (BJK)

The fund tracks the overall performance of companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment. The fund charges 65 bps in fees (read: US-Sino Trade War Escalates: Most Vulnerable Sector ETFs).

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PWRSH-DYN FD&BV (PBJ): ETF Research Reports
FT-NDQ GL AUTO (CARZ): ETF Research Reports
VANECK-AGRIBUS (MOO): ETF Research Reports
VANECK-GAMING (BJK): ETF Research Reports
US GLOBAL JETS (JETS): ETF Research Reports
VANECK-RETAIL (RTH): ETF Research Reports
Walmart Inc. (WMT) : Free Stock Analysis Report
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