PEJ is not cap-weighed and at times has benefited from its exposure to casual dining and coffee stocks, among others. However, the ETF is currently heavy on travel and leisure stocks as Wynn Resort (NasdaqGM: WYNN), Disney, Las Vegas Sands (NYSE: LVS) and Priceline (NasaqGM: PCLN) combine for over 22% of the ETF’s weight. [A Discretionary ETF’s Well-Timed Restaurant Exposure]
PEJ is down just 0.44% year-to-date. S&P Capital IQ also has a marketweight rating on the $952.7 million SPDR S&P Retail ETF (NYSEArca: XRT).
Although XRT offers exposure to 11 retail sub-sectors, it allocates nearly 26% of its weight to apparel retailers. That group has proven vulnerable to the January decline in retail sales data, which some market observers blamed on frigid weather across much of the U.S. XRT’s exposure to retail apparel names is an important factor to consider because the first quarter is typically a good time to own those stocks, but the group has not delivered for investors to this point in 2014.
SPDR S&P Retail ETF
