|Bid||13.51 x 800|
|Ask||16.25 x 1200|
|Day's Range||14.87 - 15.06|
|52 Week Range||12.56 - 19.98|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.22|
|Expense Ratio (net)||0.65%|
At a weight of about 10.3%, the consumer discretionary sector is merely the fifth-largest sector weight in the S&P 500, but that weight belies the sector's importance as a gauge of the health of the broader domestic economy. Consumer spending accounts for a massive percentage of U.S. GDP, and as a cyclical sector, consumer discretionary can provide investors with important clues regarding not only the direction of equity markets, but the economy at large.As measured by the Consumer Discretionary Select Sector SPDR (NYSEARCA:XLY), the largest consumer cyclical exchange traded fund (ETF), the sector is again performing well. Year-to-date, XLY is up 21%. But investors considering consumer discretionary stocks and ETFs have some factors to consider, including that, like any other sector, this group has some quality names and some that leave something to be desired.Morgan Stanley "analyzed more than 90 consumer-discretionary stocks, and found that only one-third achieved annual revenue growth of at least 5% over the past five years, while maintaining their profit margins," reports Barron's. "The companies that met those criteria outperformed the S&P 500 by 57 percentage points over the past five years. Those that failed lagged behind the market by 38 percentage points."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Energy Stocks to Buy to Light Up Your Portfolio For investors seeking consumer cyclical exposure, these are some of the best ETFs to consider. Consumer Discretionary ETFs to Buy: Fidelity MSCI Consumer Discretionary ETF (FDIS)Expense Ratio: 0.084% per year, or $8.40 on a $10,000 investment.The Fidelity MSCI Consumer Discretionary ETF (NYSEARCA:FDIS) is not the largest ETF dedicated to this sector, but it is the least expensive. Like the aforementioned XLY, FDIS is a cap-weighted fund and cap-weighted consumer discretionary ETFs mean large weights to shares of Amazon (NASDAQ:AMZN).For investors looking for high concentration in just one stock, FDIS is one of the best ETFs. With a weight of nearly 26% to Amazon, FDIS is one of the best ETFs for investors looking for a proxy on the e-commerce giant.Sixteen U.S.-listed ETFs allocate about 23% or more of their weights to a single stock. FDIS is one of four funds where that stock is Amazon. FDIS is also one of the best ETFs for frugal investors because in addition to being the cheapest consumer cyclical ETF, Fidelity clients can trade it commission-free. FDIS is up 21.3% this year. ProShares Online Retail ETF (ONLN)Expense Ratio: 0.58%The ProShares Online Retail ETF (NYSEARCA:ONLN) is one of the best ETFs for investors looking to focus on the online retail theme, which continues eating away at market share previously commanded by traditional brick-and-mortar retailers. This fund tracks the ProShares Online Retail Index."Analysts expect the growth of online retail to continue. About 10% of global retail sales today are made online, leaving tremendous room for growth. Recent data indicates that figure could double by 2030," according to Maryland-based ProShares. * 10 Cheap Stocks to Buy Now Count ONLN among the best ETFs for Amazon exposure as well, as that stock commands over 24% of the fund's weight. China's Alibaba (NYSE:BABA) represents over 16% of ONLN's roster. Its strategy is working, as the fund is up nearly 33% this year, making it one of the best ETFs since the start of 2019. Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD)Source: Shutterstock Expense Ratio: 0.4%For investors looking to avoid the concentration risk that comes with cap-weighted consumer discretionary funds, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (NYSEARCA:RCD) is one of the best ETFs to consider.RCD can be seen as the equal-weight alternative to the aforementioned XLY or FDIS. The Invesco fund holds 64 stocks, none of which exceed weights of 2%, but this is not the best ETF for investors seeking Amazon via the ETF wrapper because RCD allocates just 1.80% of its weight to Amazon.None of RCD's holdings are considered small-caps, but mid-caps represent over half the fund's weight, reducing the average market value of RCD's holdings to just under $43 billion compared with $290.8 billion on the cap-weighted XLY. Even with the reduced weight to Amazon, RCD is up an admirable 20% this year. However, historical data confirm RCD's lack of Amazon exposure has affected the fund's long-term returns. Amplify Online Retail ETF (IBUY)Expense Ratio: 0.65%The Amplify Online Retail ETF (NASDAQ:IBUY) is the original ETF dedicated to online retail and remains one of the leaders in this space. IBUY debuted just over three years ago and has $293 million in assets under management.This is one of the best ETFs for investors looking to tap the online retail phenomenon without excessive exposure to Amazon. While Amazon is the largest e-commerce company and one of the 40 stocks held by IBUY, it is not a top 10 holding. None of IBUY's holdings exceed weights of 4.76%. Familiar names featured in IBUY include Etsy (NASDAQ:ETSY) and Netflix (NASDAQ:NFLX). * The 10 Best Stocks to Buy for May IBUY requires its components to generate at least 70% of their sales from online venues, a requirement not found with many retail ETFs. That requirement is a difference maker because since coming to market, IBUY has easily been one of the best ETFs in the retail space. Since inception, IBUY has returned 109.4% compared to a return of 7.4% of the largest traditional retail ETF over the same period. Global X MSCI China Consumer Discretionary ETF (CHIQ)Expense Ratio: 0.65%China is a massive e-commerce market and one with plenty of accessible investments for U.S. investors. Heavy on marquee Chinese online retail names, such as Alibaba, the Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ) is one of the best ETFs for investors looking to tap the world's largest online retail market.CHIQ is an ETF for tactical investors to consider because China's online retail market is larger and growing faster than the comparable U.S. market. There are more Chinese internet users than there are people in the U.S. and many Chinese shoppers are accustomed to purchasing goods online or on mobile devices, creating significant opportunity for retailers there without the need to open capital-sapping brick-and-mortar stores.While it has been more volatile, an expected trait of Chinese stocks, CHIQ is beating the domestic XLY by 440 basis points over the past three years. Investors should dismiss CHIQ. The fund has a track record nearing a decade and over $170 million in assets under management.CHIQ could also be a way to play any thaw in the ongoing U.S./China trade tensions. Consumer spending in China is recovering from tariff-related hits, but it is not all the way back to pre-tariff levels. If the two economic heavyweights can work out trade differences, CHIQ could rally.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks to Buy to Light Up Your Portfolio * 10 Vice Stocks to Spice Up Your Portfolio * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post 5 Consumer Discretionary ETFs to Buy appeared first on InvestorPlace.
China stocks are coming back from a dismal 2018, during which the biggest ETFs tracking Chinese equities lost between 11% and 36%.
The first quarter was kind to emerging markets equities and China was a big reason why. In the first three months of 2019, the MSCI Emerging Markets Index gained 9.90% while the MSCI China Index was higher by 18.6%.China stocks and the related exchange-traded funds (ETFs) have been buoyed by an array of supportive factors, including increased risk appetite and some solid economic data, indicating investors are getting over somewhat slower economic growth in the world's second-largest economy."A mix of Chinese stimulus measures have been providing the fodder for economic growth, such as lower taxes, no corporate tax breaks, monetary policy adjustments, and more market access for foreign companies to set up shop," reports ETF Trends. "All in all, Wall Street is looking at the Chinese government's latest efforts as a plus for its economy and a boon for China ETFs."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks to Buy Leading the Financial Charge Investors should note there are dozens of China ETFs to consider, with choices ranging from the prosaic to the adventurous. Although Chinese stocks may appear to have limited upside from here, some of the following China ETFs could pleasantly surprise investors over the rest of 2019. China ETFs: VanEck Vectors ChinaAMC SME-ChiNext ETF (CNXT)Expense Ratio: 0.65% per year, or $65 on a $10,000 investment.In the China ETF conversation, the VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSEARCA:CNXT) often goes overlooked, but there are some good reasons why that should not be case. One of those is the fact CNXT is one of the prime avenues for investors looking for exposure to mid- and small-cap companies trading on mainland China, a previously tough-to-access asset class.Up 44% year-to-date, CNXT is benefiting from a theme previously highlighted in this space: MSCI's recent decision to increase the percentage of A-shares in its international indexes, including the MSCI Emerging Markets Index."One critical development is that securities on the ChiNext board of the Shenzhen Stock Exchange are set to be included this year, in addition to mid-cap A-share companies," said VanEck in a recent note. "These types of companies are generally smaller and operate in consumer-led sectors, so they have exposure to the segments of the Chinese economy that we believe are expected to drive growth going forward." Global X MSCI China Consumer Discretionary ETF (CHIQ)Expense Ratio: 0.65%Investors looking for ways to tap new retail themes do not need to confine their searches to domestic stocks and funds. China ETFs, such as the Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ), provide leverage to the e-commerce and online retail themes.In fact, an argument can be made that China ETFs are the superior ways for access to the e-commerce boom simply because China's internet market is significantly larger than that of the U.S., meaning the potential for online sales growth is larger in China than in major developed markets. Those are some of the reasons why CHIQ is up 28.53% year-to-date, compared to a gain of 15% for the largest U.S.-focused consumer discretionary ETF. * The Elite 8 Stocks to Buy for Massive Outperformance "Online retail sales in China exceeded ¥9 trillion in 2018, topping the world for the sixth consecutive year, spokesperson Gao Feng said during a regular conference of the Ministry of Commerce (MoC) on 21 March," reports The Telegraph. "The country's online retail sales maintained high-speed growth over the past 10-plus years, said Gao, who is also deputy director-general of the General Office of the MoC." Global X MSCI China Communication Services ETF (CHIC)Expense Ratio: 0.65%The Global X MSCI China Communication Services ETF (NASDAQ:CHIC) is another Global X China ETF focusing on a sector that is also available via domestically focused funds. In the case of CHIC, this China ETF is trailing the largest U.S. communication services ETF by 100 basis points this year, but that does not diminish the opportunity set with this sector in China.In the S&P 500, communication services is the fourth-largest sector weight, but in China, the sector is the third-largest sector allocation. For investors looking for growth in this sector, there are compelling reasons to consider CHIC and related Chinese ETFs."Overall, analysts anticipate that China's Communication Services will deliver higher revenue growth versus its U.S. counterpart, owing to several thematic tailwinds, including deepening internet penetration, rising wages & consumption, changing consumer habits to favor new technologies, and government support," according to Global X research. Xtrackers MSCI All China Equity ETF (CN)Expense Ratio: 0.5%.Among China ETFs, the Xtrackers MSCI All China Equity ETF (NYSEARCA:CN) is one of this year's most impressive stories that not many market participants are paying attention. After toiling in relative anonymity for nearly five years, CN is finally getting its due.As of the end of the first quarter, CN had more than $433 million in assets under management, thanks to nearly $380 million in year-to-date inflows. This China ETF is an effective way of accessing a broader basket of Chinese stocks across multiple share classes, a strategy that almost makes one ponder why it took so long for investors to warm to this Chinese ETF. CN tracks the MSCI China All Shares Index and is up 24% this year. * 10 Tech Stocks That Transformed Their Business That index "captures large- and mid-cap representation across China A-shares, B-shares, H-shares, Red-chips, and P-chips. The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai and Shenzhen," according to DWS. WisdomTree ICBCCS S&P China 500 Fund (WCHN)Expense Ratio: 0.55%.The WisdomTree ICBCCS S&P China 500 Fund (NYSEARCA:WCHN) is a China ETF that is perhaps one of the closest comparisons to the S&P 500 because WCHN follows the equivalent China benchmark, the S&P 500 China Index.With WCHN up 27% this year, it is clear this China ETF is a different beast than its domestic S&P 500 counterparts. The WisdomTree fund allocates about 41% of its combined weight to the financial services and consumer discretionary sectors. And yes, communication services is the third-largest sector weight in this China ETF at almost 12%.With some data points indicating many investors are underweight China, WCHN is a China ETF appropriate for many investors to boost exposure to this emerging economy.Wisdometree said "For investors looking for a broad access vehicle to Chinese equity beta, WisdomTree launched a Fund to track the S&P China 500 Index--WCHN, the WisdomTree ICBCCS S&P China 500 Fund. MSCI is adding more A-shares this year and will have to continue to creep higher in their exposure, but our fund is already positioned across all the Chinese stocks," according to an ETF Trends article. Invesco Golden Dragon China ETF (PGJ)Source: Shutterstock Expense Ratio: 0.7%.The Invesco Golden Dragon China ETF (NASDAQ:PGJ) is approaching its fifteenth birthday, making it one of the older U.S.-listed China ETFs. PGJ tracks the NASDAQ Golden Dragon China Index, which is made up of of Chinese companies that trade on major U.S. exchanges.Despite its age, PGJ is another Chinese ETF with hidden gem status, particularly for investors looking to stay away from slow-growing sectors such as financial services and energy. This fund should not be overlooked, given the fund's leverage to fast-growing sectors. Around 84% of PGJ's combined weight is allocated to the consumer discretionary and communication services sector. * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos The rub with PGJ is that is often more volatile than traditional China ETFs, owing to its emphasis on growth sectors. That said, PGJ's price-to-earnings ratio of 25.29 compares favorably with U.S. internet funds, a relevant comparison because eight of this China ETF's top 10 holdings are internet stocks. KraneShares CCBS China Corporate High Yield Bond USD Index ETF (KCCB)Expense Ratio: 0.69%.For adventurous fixed income investors, the KraneShares CCBS China Corporate High Yield Bond USD Index ETF (NYSEARCA:KCCB) is a China ETF to consider. While many investors think of the U.S. as the king of the high-yield corporate bond market, there are some junk bond opportunities in emerging markets, many of which are found in China's fast-growing high-yield bond market."The total value of Chinese USD denominated high yield bonds increased over 300% from 2017 to 2018, and the number of issuing companies increased by almost 150% over the same period," according to KraneShares. "By the end of 2018, the total USD China Corporate High Yield Bond market size reached $232 billion USD with over 250 issuing companies."At the end of last year, KCCB had a 30-day SEC yield of 5.3% and its duration is 6.7 years.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks From Around the World That Beat U.S. Stocks * 7 Breakout Stocks to Watch in 2019 * 5 Cheap Small-Cap Stocks to Buy Compare Brokers The post 7 China ETFs to Consider Right Now appeared first on InvestorPlace.
For years, the universe of retail exchange-traded funds (ETFs) was dominated by prosaic offerings, namely the SPDR S&P Retail ETF (NYSEARCA:XRT). The equal-weight XRT is nearly 13 years old, cementing its status as one of the godfathers of the retail ETF space.This retail ETF "seeks to provide exposure the retail segment of the S&P TMI, which comprises the following sub-industries: Apparel Retail, Automotive Retail, Computer & Electronic Retail, Department Stores, Drug Retail, Food Retailers, General Merchandise Stores, Hypermarkets & Super Centers, Internet & Direct Marketing Retail, and Specialty Stores," according to State Street.Thing is the retail space, like so many other once traditional segments, is being disrupted and retail ETFs are starting to reflect that disruption. That disruption is coming at XRT's expense. Today, the retail ETF has just over $326 million in assets under management following year-to-date outflows of more than $224 million.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnderscoring the point that investors are looking for something different with retail ETFs is this data point: in three of the four years ending 2018, XRT suffered annual outflows. * 7 Invincible Stocks Leading The Bull Market Higher For investors looking to be on the specialty, disruptive side of the retail ETF space, here are some funds to consider. Amplify Online Retail ETF (IBUY)Expense ratio: 0.65% per year, or $65 on a $10,000 investmentThe Amplify Online Retail ETF (NASDAQ:IBUY) debuted in April 2016 as one of the first retail ETFs dedicated to where retail sales growth is expected to come from in the years ahead: e-commerce and online venues. IBUY tracks the EQM Online Retail Index, which mandates that member firms derive at least 70% of their sales from online or virtual venues.As highlighted by its more than $281 million in assets under management, IBUY is more than a credible competitive threat to traditional retail ETFs. More importantly than IBUY's size, is its performance, which not only justifies its above-average fee, but cements its status as a real threat to old guard retail ETFs.Since coming to market, IBUY is up 96.50% compared to a gain of just 2.10% for XRT over that period. Impressively, IBUY's dominant performance has been accrued without excessive weights to Amazon (NASDAQ:AMZN). Shares of the largest e-commerce company currently are not even a top 10 holding in IBUY. ProShares Long Online/Short Stores ETF (CLIX)Expense ratio: 0.65% per year, or $65 on a $10,000 investmentThe ProShares Long Online/Short Stores ETF (NYSEARCA:CLIX) takes a specialized approach to retail stocks, offering investors long exposure to Internet retailers with short exposure to retailers that are still dependent on physical stores for the bulk of their sales."CLIX combines a 100% long position in retailers that primarily sell online or through other non-store channels with a 50% short position in those that rely principally on physical stores," according to ProShares.Remembering that physical stores are being shuttered that a rapid rate and that online sales represent just 10% of overall retail sales, the long-term case for this retail ETF is sound. Plus, growth of online sales is expected to outpace brick-and-mortar retail sales growth by a 3-to-1 margin as soon as next year. * 5 Cloud Stocks to Help Your Portfolio Fly CLIX is reflecting those expectations. After hitting an all-time high last Friday, the retail ETF is up nearly 25% this year. ProShares Pet Care ETF (PAWZ)Expense ratio: 0.50% per year, or $50 on a $10,000 investmentThe ProShares Pet Care ETF (CBOE:PAWZ) debuted last November as the first ETF dedicated to the pet care industry. While PAWZ is not a dedicated retail ETF, pet owners know that there are financial commitments that come along with being a good pet owner. Those commitments mean opportunity in the investment world."The pet care industry could reach $203 billion in global sales by 2025. It has grown steadily every year since 2001, even during the Great Recession," according to ProShares.Veterinary pharmaceuticals makers and pet supply stores combine for almost 40% of the 24 stocks found in PAWZ. The fund is up 8.22% year-to-date and if it can convincingly take out the $41 area, upside from there is potentially significant. Global X MSCI China Consumer Discretionary ETF (CHIQ) Expense ratio: 0.65% per year, or $65 on a $10,000 investmentWhen considering retail ETFs, investors should remember there are important opportunities outside the U.S. and many of those opportunities can be found in China, the world's second-largest economy. The Global X MSCI China Consumer Discretionary ETF (NASDAQ:CHIQ) is a direct route to the Chinese consumer and that country's booming online retail market.Many of the 49 stocks residing in CHIQ are familiar to U.S. investors because those companies have listings in New York. That group includes Alibaba (NYSE:BABA) and JD.com Inc. (NASDAQ:JD), among others. Despite the trade tensions with the U.S., Chinese stocks are performing well this and CHIQ is participating in that theme. This retail ETF is up 23.59% year-to-date, slightly more than double the gains of the largest U.S. consumer discretionary ETF. * 5 Dow Jones Stocks Coming to Life "China's government also implemented tax reforms to encourage greater consumption, supporting the Consumer Discretionary sector," according to Global X research. First Trust Nasdaq Retail ETF (FTXD)Expense ratio: 0.60% per year, or $60 on a $10,000 investmentThe First Trust Nasdaq Retail ETF (NASDAQ:FTXD) uses a unique weighting methodology that is not found on other retail ETFs. This retail ETF, which turns three years old in September, employs growth, value and volatility factors in its stock selection and member firms are ranked based on their scores across those factors.While FTXD's weighting scheme is not traditional, its overall approach to retail is. This retail ETF allocates 32.75% of its weight to specialty retailers and 20% of its weight to broadline retailers. Food and apparel retailers combine for about a third of the fund's weight.In other words, many of FTXD's 50 holdings are brick-and-mortar retailers. While there are some online retailers in this fund, weights to those stocks are dwarfed by FTXD's exposure to old school retail fare. This year, the aforementioned IBUY is beating FTXD by a margin of 6-to-1. Amplify International Online Retail ETF (XBUY)Expense ratio: 0.69% per year, or $69 on a $10,000 investmentHaving debuted in late January, the Amplify International Online Retail ETF (NASDAQ:XBUY) is one of the newest retail ETFs on the market and is also the international counterpart to the domestically focused IBUY.XBUY follows the EQM International Ecommerce Index, which has even more stringent requirements than IBUY's underlying index. XBUY's index "eeks to measure the performance of equity securities issued by non-U.S. companies that derive at least 90% of their revenue from online business transactions or e-commerce platforms," according to Amplify. * 3 Top Breakout Stocks Brimming With Potential XBUY provides exposure to 12 countries, eight of which are developed markets. The retail ETF's geographic exposure tilts heavily toward the Asia-Pacific region as China and Japan combine for half the fund's geographic weight. VanEck Vectors Retail ETF (RTH)Expense ratio: 0.35% per year, or $35 on a $10,000 investmentIf Amazon's price tag of more than $1,700 is off-putting or hard to reach for many investors, the VanEck Vectors Retail ETF (NYSEARCA:RTH) is a great way for capital-starved investors to get Amazon exposure. This retail ETF had an Amazon weight of 19.28% at the end of February, one of the largest weights to the e-commerce giant among all ETFs.Most of RTH's other 24 holdings get the bulk of their sales from traditional stores, but RTH allocates 9.81% of its weight to Walmart Inc. (NYSE:WMT), a company that is willing to compete with Amazon in the online retail space. China's JD.com is 2.75% of this retail ETF's weight.Up 14% year-to-date, Amazon is helping RTH to a 2019 gain of 8.27%. In other words, RTH is highly correlated to Amazon.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post 7 Specialty Retail ETFs to Buy the Industry's Disruption appeared first on InvestorPlace.
China stocks are poised to go up further, especially in the wake of Trump's announcement. Investors should definitely tap the opportune moment with the following five ETFs.
NEW YORK , Feb. 12, 2019 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), today announced the inclusion of seventeen additional ETFs to Schwab ETF OneSource, ...
Typical iterations of China sector exchange traded funds predominantly focused on Internet and technology stocks, but Global X has long offered sector ETFs targeting China's energy, financial services ...
A combination of market volatility in U.S. equities and an impending U.S.-China trade deal signals a perfect time for investors to obtain emerging markets exposure via the largest EM economy and the second ...
NEW YORK , Dec. 11, 2018 /PRNewswire/ -- Global X Funds, the New York -based provider of exchange-traded funds (ETFs), today announced the launch of six China -focused ETFs, including five China Sector ...
Despite the bout of market volatility, investors should not totally forsake investing in the markets and ETFs all together, but people should consider options to safely ride out the environment ahead. "I think you can't take your eye off the ball, and the ball is long-term investing," Jon Maier, SVP and Chief Investment Officer for Global X, said at the Charles Schwab IMPACT 2018 conference. After the year of volatility, there are a number of markets that have been battered and beaten down, which may be a buying opportunity for long-term investors to get in on the cheap.
Amid a trade war with the United States, Chinese stocks are languishing this year. The large-cap FTSE China 50 Index is down 7.1 percent year-to-date. While that's less worse than the 8.2 percent lost by the MSCI Emerging Markets Index, Chinese stocks are slumping while their U.S. counterparts are making record highs.
When creating a diversified investment portfolio, ETF investors should consider how thematics can help differentiate a balanced portfolio and leverage disruptors that are upending traditional equity paradigms. ...