|Bid||106.75 x 900|
|Ask||111.94 x 900|
|Day's Range||107.20 - 107.76|
|52 Week Range||87.11 - 112.23|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.11|
|Expense Ratio (net)||0.35%|
First-quarter earnings growth is likely to be negative this year, but revenues will grow. So, play revenue growth with these sector ETFs.
Consumer discretionary stocks and exchange-traded funds (ETFs) have been among the most closely watched area of the market this year. That's because consumer spending, and the health of the economy broadly, are up in the air.Consider the words of Brad Sorenson, Charles Schwab's managing director of market and sector analysis: "The outlook for American consumer spending appears to us to be solid, with consumer confidence still strong, a tight labor market and wages trending higher. However, spending on traditional retail items has been cautious and competition among retailers may limit profitability, while recent softening in auto sales and housing is worth paying attention to."To wit, consumer spending in January (reporting was delayed because of the government shutdown) recovered less than expected, sparking worries among economists. But investors have been undeterred. Consumer discretionary stocks are the second-best performing sector on Wall Street this year (+18.6%), lagging only technology (+23.4%).Here are 10 of the best consumer discretionary ETFs to buy if you're still optimistic about the American economy and consumer, and want to strike while the iron remains hot. These funds hold dozens if not hundreds of consumer stocks, allowing you to defray risk while investing in various slices of this consumer sector. SEE ALSO: The 19 Best ETFs for a Prosperous 2019
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.
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.
The U.S. economy is continuing to see job gains and has started 2019 on solid note too. These sector ETFs should the beneficiary of January jobs report.
The National Retail Federation (NRF) is projecting retail sales figures to grow from 3.8 to 4.4 percent, which is lower than the 4.6 percent growth experienced in 2018--something investors should take note of with respect to retail-focused exchange-traded funds (ETFs). ETFs to keep an eye on are the SPDR S&P Retail ETF (XRT) , Amplify Online Retail ETF (IBUY) and VanEck Vectors Retail ETF (RTH) . XRT is up 8 percent year-to-date, while IBUY is up almost 18 percent and RTH is 7.6 percent higher YTD.
After a volatile December that saw U.S. equities finish their worst year in over a decade, the retail sector was banking on a strong holiday shopping season to shake its own market doldrums. With the ongoing government shutdown delaying retail figures from the Commerce Department, retail investors are left to wonder whether a market cap-weighted strategy or an equal weight strategy will serve them best moving forward. ETF Trends Publisher Tom Lydon joined CNBC's Bob Pisani on the new "ETF Edge" show to discuss the dichotomy of these two strategies inherent in VanEck Vectors Retail ETF (RTH) and SPDR S&P Retail ETF (XRT) .
Consumer discretionary stocks, of those companies which offer goods and services which are desirable to consumers when they have sufficient means, were able to ride out some of the overall downward pressures on the stock market in late 2018. While many sectors plummeted in the final weeks of the year as a result of increasing trade tensions, geopolitical events and more, consumer discretionary companies were more likely than many of their rivals to see a boost from holiday shopping. For investors interested in broad exposure to the consumer discretionary space, exchange-traded funds (ETFs) remain a strong option.
Though the last quarter of 2018 was the worst in a decade for Amazon, it still has plenty to offer for investors, putting related ETFs in focus.
These sector ETFs and stocks should give solid performance in the coming days thanks to upbeat jobs data for the month of December.
U.S. retailers revealed rising sales in their latest quarterly report cards, reflecting robust consumer spending in a healthy economy ahead of the traditional holiday shopping season, but retail stocks and sector-related exchange traded funds remain unimpressed. On Tuesday, the SPDR S&P Retail ETF (XRT) fell 2.9% and VanEck Vectors Retail ETF (RTH) declined 3.5%. A healthy economy with a tight labor market, unemployment levels near half-century lows and wage growth have strengthened consumer confidence, allowing American consumers to be more liberal in their discretionary purchases.
A strong holiday shopping season is being predicted for 2018, with analysts at brokerage firm Edward Jones calling for a 5% increase in sales from last year, down slightly from the 5.6% year-over-year (YOY) growth rate posted in 2017, but still above the 5-year average, Barron's reports. More good news for retailers in 2018: inventories look lean, there's an additional shopping day before Christmas compared to 2017, and investments in ecommerce initiatives by brick-and-mortar stores appear set to pay off. Another Barron's article suggests that investors consider these 9 retail ETFs: Amplify Online Retail ETF ( IBUY), Direxion Daily Retail Bull 3X Shares ( RETL), First Trust Nasdaq Retail ETF ( FTXD), Invesco Dynamic Retail ETF ( PMR), ProShares Decline of the Retail Store ETF ( EMTY), ProShares Long Online/Short Stores ETF ( CLIX), ProShares Online Retail ETF ( ONLN), SPDR S&P Retail ETF ( XRT), and VanEck Retail Vectors ETF ( RTH).