For those investors who own retail exchange traded funds (ETFs), let’s look at how the holiday retail season panned out. Holiday shoppers eventually came around and analysts believe this spending will continue into January with the popularity of the gift card. Matthew Kirdahy of Forbes reported that Wal-Mart (WMT) stores had healthy December sales that seemed contagious throughout the sector.

While Wal-Mart, Costco (COST) and Target (TGT) are the large retail chains, not all of the retail ETFs include them as part of their top holdings.

  • Retail HOLDRs (RTH) was up 4% for 2006 and holds 18% Wal-Mart, 10% Target and 4% Costco;
  • Consumer Discretionary SPDR (XLY) up 18% and includes 4% Target;
  • PowerShares Dynamic Retail (PMR) up 22% and this ETF does not hold Wal-Mart, Target or Costco in its top holdings.

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.