|Bid||44.10 x 1000|
|Ask||50.00 x 900|
|Day's Range||46.78 - 47.54|
|52 Week Range||37.06 - 54.55|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.43|
|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.
With most of the broad and widely observed benchmarks already accounted for, money managers are crafting targeted or thematic ETFs to help investors hone in on specific areas to potentially enhance returns.
With online shopping taking a large piece of the broader retail industry, the Amplify Online Retail ETF (IBUY) and rival e-commerce-focused exchange traded funds (ETFs) are benefiting. IBUY, the first US-listed ETF dedicated to online retail, is up 28.5% year-to-date, more than double the 12.3% returned by the SPDR S&P Retail ETF (XRT) . IBUY seeks investment results that generally correspond to the price and yield of the EQM Online Retail Index.
Jumia Technologies AG ADR began trading Friday morning and quickly jumped 32.6% after opening. Shares priced late Thursday at $14.50, about the midpoint of the $13-to-$16 expected range. Jumia is the top e-commerce site in Nigeria, and sells merchandise ranging from clothing to appliances across Africa. The Amplify Online Retail ETF has gained 23.6% for 2019 so far while the S&P 500 index is up 16% for the period.
Though February's retail sales declined and missed market expectations, there are some winning corners. Play those areas with these ETFs and stocks.
With the first quarter of 2019 coming to a close, it's easy to forget the retail sector since the holidays are a distant memory, but the recent rally in the sector is a reminder to investors that they should consider adding retail-focused exchange-traded funds (ETFs) to their portfolios. While strength in the retail sector piggybacks off of strong consumer spending, there has been a lot of movement within the sector that could make for some interesting ETF plays. For example, shares of Bed, Bath & Beyond surged 25 percent with activist investor interest--moves like this that could shake up the core foundation of longstanding retailers and inject a new lease on life, particularly those that are struggling.
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.
St. Patrick's Day is around the corner and investors across the world are keen on trying their Irish luck for green returns in their stock portfolio.
Consumer discretionary ETFs have had a stellar run in the 10-year old bull market, having beaten the S&P 500. Will the rally continue?
ThirdLove, the privately-held women's underwear company, announced the completion of a $55 million round of funding with investors including Tim Armstrong, the former CEO of Oath and AOL, journalist Katie Couric, and Susan Wojcicki, CEO of YouTube, among the investors. ThirdLove Chief Executive Heidi Zak says the funds will help the company continue to pursue its mission to create "a bra for everybody," with the company expanding to 78 sizes and five styles already. The SPDR S&P Retail ETF has slipped about 2% over the past year, the Amplify Online Retail ETF has gained 4.2% for the period, and the S&P 500 index is up 0.6% for the last 12 months.
Expedia Stock: Highlights for Investors(Continued from Prior Part)Rising online travel platform demandThe travel industry dynamics have changed drastically over the last decade. Travelers are shifting to online travel booking agencies instead of
Expedia Stock: Highlights for Investors(Continued from Prior Part)Room night growthLodging remains the major revenue growth driver for Expedia (EXPE). The business unit accounted for 69% of the company’s fourth-quarter revenues. The segment
December retail sales were lackluster. But several underperforming areas have long-term potential and investors can tap those with ETFs.
On Thursday, the Commerce Department reported that retail sales dropped to its lowest level in nine years, which evidenced a drop in economic activity near the end of 2018 as markets were getting roiled by volatility. Looking at the data, the Commerce Department reported retail sales fell 1.2 percent, its largest drop since September 2009 as the financial crisis took a hold of the capital markets. In addition, November data was revised lower to show retail sales were up 0.1 percent as opposed to the previously reported 0.2 percent.
TripAdvisor’s Q4 Earnings Missed the Estimates(Continued from Prior Part)EBITDA performanceTripAdvisor’s (TRIP) fourth-quarter adjusted EBITDA rose ~38% YoY (year-over-year) to $87 million from $79 million in the fourth quarter of 2017. The
Expedia Rose ~8% after Its Q4 Earnings Beat(Continued from Prior Part)Room night growth Lodging accounted for 69% of Expedia’s (EXPE) fourth-quarter revenues. Lodging is still the most important contributor to the company’s top line. Expedia’s