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Super Saturday the Biggest Shopping Day of 2018? 4 ETF Deals

Sanghamitra Saha
The Dow Jones registered its best week since November. This is likely to benefit a few funds given the Mexico trade deal, a dovish Fed and possibilities of an oil price rally.

As Black Friday marks the beginning of the holiday shopping season, Super Saturday — the last Saturday before Christmas — is known for wrapping it up. Stores offer heavy discounts to last minute shoppers to generate as much revenue as possible.

The day is drawing more attention this year as U.S. shoppers are likely to shell out an estimated $26 billion on Dec 22, beating $24 billion spent on Black Friday, per Customer Growth Partners.

According to a survey by the NRF and Prosper Insights & Analytics, 56% of holiday shoppers — about 134 million people, up from 126 million last year — plan to shop on “Super Saturday.” Of consumers who are yet to tick off their shopping list, 44% are still deciding what to buy, up from 42% last year.

How Is Holiday Shopping Going This Year?

From the data we have received so far, holiday shopping is pretty upbeat this time but is showing a shift in pattern.

For example, according to the International Council of Shopping Centers, 44% of U.S. adults plan to shop for holiday presents on Saturday, spending an average of $173 in-store and online. This marks a huge jump from the 38% who shopped on Super Saturday last year.

Some of the retailers offering best last-minute deals include the likes of Amazon AMZN, Best Buy BBY, Costco COST, Target Corp. TGT, JCPenney JCP and Kohl's KSS.

How to Invest?

Below we highlight a few ETF options to cash in on the trend.

SPDR S&P Retail ETF XRT

This retail ETF should definitely be there on the shopping list. More than 40% of people looking to shop this weekend plan to visit physical stores, per ICSC. However, some online orders placed on Saturday should come by Christmas Eve (read: ETF & Stock Picks to Bet on Upbeat Retail Sales in November).

As of Dec 12, about 21% of last-minute shoppers plan to hit apparel stores. With XRT putting one-fourth of its weight in the apparel industry, this fund has every reason to outperform. The fund has a tilt toward small-cap stocks.  The fund has a Zacks ETF Rank #2 (Buy).

VanEck Vectors Retail ETF RTH

This Zacks Rank #2 retail ETF has huge exposure to Amazon (18.38%), followed by Home Depot (10.52%) and Wal-Mart Stores (9.48%). These companies are known for huge holiday season business.

Amplify Online Retail ETF IBUY

Now who can ignore online retail ETF — the most important medium of shopping? In-store purchases have been declining of late, thanks to surging demand for technologies. As of Dec 12, about half of the consumers had plans for making their remaining purchases online. This makes IBUY an intriguing ETF deal for Christmas (read: New Online Retail ETF is on the Block).

Consumer Discretionary Select Sector SPDR Fund XLY

This Zacks Rank #2 fund puts 27.4% weight in Internet & Direct Marketing Retail, 25.96% in Specialty Retail, 21.1% in Hotels Restaurants & Leisure and 8.1% in Textiles Apparel & Luxury Goods (see all Consumer Discretionary ETFs here).

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
SPDR-CONS DISCR (XLY): ETF Research Reports
 
AMPL-ONLN RETL (IBUY): ETF Research Reports
 
VANECK-RETAIL (RTH): ETF Research Reports
 
SPDR-SP RET ETF (XRT): ETF Research Reports
 
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
 
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Kohl's Corporation (KSS) : Free Stock Analysis Report
 
J. C. Penney Company, Inc. (JCP) : Free Stock Analysis Report
 
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