In these cost-conscious times for consumers, luxury retail exchange traded funds (ETFs) may have taken a backseat. But for many investors, luxury names are coming back into vogue.

In the first half of 2009, high-end retailers have seen good growth patterns, luring many investors to add these names to their portfolios. There’s still a question as to how these names will perform in the coming months, however, as elevated unemployment, weak income growth, and historically high debt levels still plague the economy, explains Josh Lipton for Minyanville.

These retailers have another strategy, though: since the shoppers are mostly staying at bay, the retailers are ramping up cost-cutting efforts. By cutting back on administrative and sales  efforts, the expenses are lower, while the earnings look better.

The question is whether cost-cutting will work in the long term, since many wonder whether Americans have turned over a new leaf in their spending habits. Generic brands and bargain-basement prices are in vogue, but whether it will remain that way has yet to be seen.

The luxury retail ETF has been faring well year-to-date, up nearly 37% – you can’t fight the trend. If this trend reverses itself, have an exit strategy.

• Claymore/Robb Report Global Luxury (ROB): up 36.7%year-to-date

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Tags: Luxury, Retail, ROB, Sector ETFs