|Bid||0.00 x 1100|
|Ask||0.00 x 1100|
|Day's Range||38.41 - 38.72|
|52 Week Range||27.65 - 40.16|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.58%|
Amazon's famed Prime Day is fast approaching and with the stock residing above $2,000 for the first time in nine months, it is evident investors expect this Prime Day to smash previous records. Investors can tap into that trend with exchange traded funds such as the ProShares Online Retail ETF (ONLN) . ONLN, which is a year old, tracks the ProShares Online Retail Index.
“Online sales still only make up about 12% of total global retail sales,” ProShares’ Global Investment Strategist Simeon Hyman said in a note. Looking ahead, by 2020, online sales are projected to surpass $4 trillion, with the biggest players in the field largely expected to capture a major share of the growing pie. For example, Amazon is estimated to account for half of all online sales by 2023.
The retail sector has been falling behind in the S&P 500 for the first half of the year and the trend doesn't seem to be shifting anytime soon. Dragging on the retail segment, many consumers have been shunning more traditional brick-and-mortar retailers in favor of businesses that have more quickly adapted to e-commerce or online retail businesses. For example, the ProShares Decline of the Retail Store ETF (EMTY) and ProShares Long Online/Short Stores ETF (CLIX) both take a short position in brick-and-mortar retail stores to capitalize on weakness in traditional stores.
Amid escalating trade war tensions, U.S. economy cheers investors with a rise in retail sales, reflecting strong consumer sentiments.
ProShares, a premier provider of ETFs, announced that it has joined FundVest® ETF, the no-transaction-fee exchange traded fund platform by BNY Mellon’s Pershing .
Despite the capital markets getting racked by trade wars in May, retail sales grew 0.5 percent and data was revised higher in April to 0.3 percent, according to the Commerce Department. Economists polled by data company Reuters were forecasting a 0.6% in May, but compared to the previous time last year, retail sales actually increased 3.2 percent. ETF plays in the retail sector include the SPDR S&P Retail ETF (XRT).
As more and more consumers have turned toward online shopping as a means of acquiring goods and services, online retailers like Amazon have exploded, as is evidenced by their over $900 billion market cap. One prime example is Lululemon, who on Wednesday said that online sales this past quarter grew 35%. Brick and mortar retailer Target’s online sales were up 42%, and retail giant Walmart stated it had 37% digital growth. Dick’s Sporting Goods’ online sales were up 15%, while Best Buy’s digital commerce in the U.S. grew 14.5%.
The Consumer Discretionary Select Sector SPDR (NYSEARCA:XLY), the largest exchange-traded fund dedicated to the consumer discretionary sector, was up nearly 18% year-to-date at the start of June 11, putting it nearly 240 basis points ahead of the S&P 500.Consumer discretionary is the fourth-largest sector weight in the S&P 500. The primary reason why traditional, cap-weighted consumer cyclical ETFs like XLY are thriving this year is Amazon (NASDAQ:AMZN). That stock is up almost 24% year-to-date and is carrying many consumer cyclical funds because it is by far the largest holding in those ETFs.For example, XLY allocates 24.57% of its weight to shares of Amazon, more than double the weight assigned to the fund's second-largest component.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSure, some of the best ETFs in the consumer cyclical space have large weights to Amazon. That is to be expected. On the other hand, some of the best ETFs offering exposure to this sector have surprisingly small weights to Amazon, offering investors unique and potentially rewarding approaches to consumer-related stocks. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Here are some of the best ETFs for exposure to the consumer discretionary to consider over the next few months. Fidelity MSCI Consumer Discretionary ETF (FDIS)Expense Ratio: 0.084%, or $8.40 annually per $10,000 investedThe Fidelity MSCI Consumer Discretionary ETF (NYSEARCA:FDIS) is the least expensive consumer discretionary fund on the market today. Adding to the case for this being one of the best ETFs for investors to consider in this sector is that Fidelity clients can trade FDIS commission-free, which adds to their cost savings.Like the aforementioned XLY, FDIS is a cap-weighted fund, so it has a massive weight to Amazon, 25.48% to be precise. FDIS is also home to Home Depot (NYSE:HD), McDonald's (NYSE:MDC), Nike (NYSE:NKE) and Disney (NYSE:DIS) -- four of the Dow Jones stocks that are up at least 10% this year.Investors considering FDIS right now should be advised that the consumer discretionary sector has a tendency to struggle in the summer months, but long-term investors that can catch a pullback in FDIS could be rewarded because consumer cyclical stocks usually bounce back in the latter stages of the third quarter and soar in the last three months of the year. Amplify International Online Retail ETF (XBUY)Expense Ratio: 0.69%The Amplify Online International Retail ETF (NYSEARCA:XBUY) debuted earlier this year as the international counterpart to the popular Amplify Online Retail ETF (NASDAQ:IBUY). Online retail and e-commerce are themes dominated by Amazon in the U.S., but these themes are global, making XBUY one of the best ETFs to consider in this space.XBUY holds 46 stocks and tracks the EQM International Ecommerce Index. That benchmark "seeks 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.XBUY's holdings include traditional retailers, online travel providers and marketplace companies, such as Shopify (NYSE:SHOP). XBUY is one of the best ETFs for tactical investors seeking ex-U.S. exposure because online shopping has significant tailwinds. * 7 U.S. Stocks to Buy With Limited Trade War Exposure "Ecommerce represented a growing share of the retail market in 2018, taking a 14.3% share of total retail sales last year, up from 12.9% in 2017 and 11.6% in 2016," notes Digital Commerce 360. "More significant is that ecommerce sales represented more than half, or 51.9%, of all retail sales growth. This is the largest share of growth for purchases made online since 2008, when ecommerce accounted for 63.8% of all sales growth." 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 for umbrella exposure to the biggest names in online retail. Case and point: ONLN allocates over 40% of its combined weight to Amazon and Alibaba (NYSE:BABA). ONLN is just 11 months old, but the fund is already displaying the potency of dedicated online retail investments as it is up nearly 23% year-to-date.While ONLN is essentially a bet on two stocks due to the largest weights assigned to Amazon and Alibaba, there is no denying the favorable fundamental data that underpins this fund, making it one of the best ETFs in this market niche."With nearly all of the constituents of the ProShares Online Retail index reporting, sales growth came in at nearly 20% and earnings growth came in at nearly 55%," according to ProShares.As ONLN's performance indicates, investors should embrace purity when it comes to online retailers."Some retail observers note the increased online presence of legacy bricks-and-mortar retailers as evidence that the online/brick and mortar bifurcation of the retail universe is becoming less relevant. However, this ignores the evidence that expanding the online businesses of legacy bricks-and-mortar players isn't benefiting their bottom lines. In the first quarter, Walmart's online sales grew 37%; however, Walmart's first quarter earnings shrank nearly 1%," according to ProShares.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post 3 Consumer Discretionary ETFs That Could Heat Up This Summer appeared first on InvestorPlace.
This year, the ProShares Online Retail ETF (NYSEArca: ONLN) is up more than 24%, meaning the dedicated online retail ETF is beating the largest traditional retail ETF by a 12-to-1 margin. Shopping and ...
"Thematic or trend investing, as some people are terming it, is really a fascinating area in the ETF world for new product development," Kieran Kirwan, Director, Investment Strategy Proshares, said at the Morningstar Investment Conference.
As has been widely noted, some retail exchange traded funds are being pinched by shoppers’ ongoing preference for online shopping. Much of that trend is being driven by Amazon.com Inc. (AMZN) , the largest e-commerce company. Investors looking for exchange traded funds that act as proxies for Amazon stock have options to consider as several consumer discretionary and retail ETFs have weights to the e-commerce giant in excess of 20%.
ProShares, a premier provider of ETFs, today announced the inclusion of nine more of its ETFs to the TD Ameritrade ETF Market Center’s menu of commission-free funds.
For example, ETF investors can look to targeted ETF strategies such as the ProShares Pet Care ETF (PAWZ) to capture the growth in the pet care industry. PAWZ is the first ETF of its kind to cater to the pet care industry. The ETF idea tries to capitalize on the pet care industry that is poised for even further growth as data collated from Grand View Research and other pet industry trends show that sales could reach upwards of $203 billion by the year 2025–a growth of 54% in less than 10 years.
With the first quarter of 2019 behind us, it’s easy to forget the retail sector since the holidays are a distant memory, but last month's rally in the sector is a reminder to investors that they should consider adding retail-focused 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 like SPDR S&P Retail ETF (XRT).
As a number of global market trends quickly develop, investors can look to targeted exchange traded funds to tap into these growth opportunities. "Enormous changes in demographics, innovation, technology, and changing tastes are reshaping the world around us," Simeon Hyman, Global Investment Strategist at ProShares, said on the recent webcast, Pet Care, Infrastructure & Online Retail—Investing in Today’s Global Trends. For example, the U.S. is witnessing a proliferation in pet ownership.
On the upcoming webcast, Pet Care, Infrastructure & Online Retail—Investing in Today's Global Trends, Simeon Hyman, Global Investment Strategist at ProShares, and Kieran Kirwan, Director of Investment Strategy at ProShares, will discuss how you can put them to work in your portfolio. Specifically, ETF investors can look to targeted ETF strategies such as the ProShares Pet Care ETF (PAWZ).
Though consumer spending was weak at the start of 2019, the second quarter may see a rebound as indicated by latest spending data and consumer confidence. Investors thus can bet on these ETFs.
As has been widely noted, some retail exchange traded funds are being pinched by shoppers' ongoing preference for online shopping. Much of that trend is being driven by Amazon.com Inc. (AMZN), the largest e-commerce company. Conversely, next-generation retail ETFs with significant exposure to Amazon and the online shopping theme are benefiting.
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.
Exchange-traded funds (ETFs) with the heaviest weighting of Amazon moved higher on Friday after the online retail giant topped earning expectations after the closing bell on Thursday. Shares of Amazon were up as much as 1 percent in the early trading session as Wall Street digested the results, noting that earnings are trending towards less growth, but wider profit margins as it revamps its current operations and services. Revenue and web services came in line with analysts' expectations.
ETFs with the highest allocation to Amazon are in focus for the coming days and investors should definitely cash in on the opportune moment when arises.
The exchange-traded funds (ETFs) with the largest holdings of Amazon will certainly be ones to watch this week as the tech giant is set to report its first-quarter earnings on Thursday after the closing bell. No longer is Amazon just an alternative for college students to find cheaper books online as the retail behemoth founded in 1994 has become a global powerhouse setting its sights on dominating other spaces, such as cloud computing and video streaming. Amazon is experimenting with other avenues for revenue and admittedly, founder and CEO of Amazon Jeff Bezos warned that this could lead to some bad bets--multimillion dollar ones at that.
Retail stocks and exchange traded funds (ETFs) are rallying this year, including some brick-and-mortar names. For now, the ProShares Decline of the Retail Store ETF (NYSEArca: EMTY) is being pinched by ...