Retail ETFs Have a Holly, Jolly Christmas

December 25th at 1:00am by Tom Lydon

Retail exchange traded funds (ETFs) this month have demonstrated that despite what many say Christmas is supposed to be about, consumption still has a big part.

Christmas is a religious holiday, but what exactly does this mean to the vast majority? Most surveyed said they will give gifts (89%), dine with family or friends (86%), put up a Christmas tree (80%) and play holiday music (79%), reports Cathy Lynn Grossman for USA Today.

What’s interesting is that nine in 10 celebrate Christmas, only six in 10 encourage any belief in the source of Christmas and only three in 10 actually read the story of Christmas. [How to Play the Santa Claus ETF Rally.]

The other side of Christmas is the commercial aspect, and shoppers are representing this year. Mae Anderson for Bloomberg BusinessWeek reports that shoppers are out in droves this past week for Christmas givers, and the Saturday before Christmas is known as “Super Saturday,” among retailers, and it’s one of the busiest shopping days of the year. Research firm ShopperTrak expects it will be the third-busiest this year. [Transportation ETFs May Be Mixed for the Holidays.]

The sales rush has been enough to drive retail ETFs this month, too. Look at how they’ve done:

  • SPDR S&P Retail (NYSEArca: XRT): Up 4.0% in the last month
  • Vanguard Consumer Discretionary (NYSEArca: VCR): Up 4.8% in the last month
  • First Trust Consumer Discretionary AlphaDEX (NYSEArca: FXD): Up 5.7% in the last month

Happy Holidays from ETF Trends!

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.