Retail ETFs: Are September Numbers Foreshadowing the Holidays?

October 8th at 2:00pm by Tom Lydon

Retail ETFsThe September retail sales figures are in, and it’s better than expected. But can these results be turned around into a holiday “win” for retail exchange traded funds (ETFs)?

Why analysts predicted a 1% decline, sales actually rose 0.6%. Discounts and bargains have helped lure the shy-to-spend consumer, reports Rachel Dodes for The Wall Street Journal.

Ultimately, September sales numbers monitored stores open for at least one year, and this report is a key measure of retailer’s health and consumer spending. Will the positive numbers translate into a merry holiday season for retailers? Yes and no.

Retailers are predicting that they’ll see a 1% drop in sales over the holidays. But this is also an improvement over last year’s dismal showing, when sales dropped 3.4%, the Associated Press reports. Consumer confidence is higher than it was a year ago, and shoppers may be more willing to spend.

  • SPDR S&P Retail (NYSEArca: XRT): up 71.1% year-to-date

  • Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) up 28.5% year-to-date

  • Claymore/Robb Report Global Luxury (NYSEArca: ROB) up 42.6% year-to-date


For more stories about retail, visit our retail category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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