Retail exchange traded funds (ETFs) are jumping for joy at the news of an unexpected gain. So, if you were feeling a little guilty about that splurge, just tell yourself it was for the greater good.
Retail sales rose a full point in May as consumers went on spending sprees with their rebate checks, reports Joanne Morrison for Reuters. Even Wall Street wasn’t that optimistic – the actual numbers were twice what had been expected.
Excluding autos, sales rose 1.2%. Excluding autos, building materials and gasoline, sales still managed a rise of 0.8%.
- SPDR S&P Retail (XRT): down 8.1% year-to-date
- Retail HOLDRs (RTH): up 0.2% year-to-date
- iShares S&P Global Consumer Discretionary (RXI): down 10.5% year-to-date
- Vanguard Consumer Discretionary (VCR): down 8.4% year-to-date
For full disclosure, some of Tom Lydon’s clients own shares of RTH.
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.