Could there be fewer retail exchange traded funds (ETFs) in little blue boxes this year? The Tiffany & Co. (TIF) rating fell Tuesday, so anticipation of these blue boxes may have a few of us feeling, well, blue. This is not a good sign right before the holidays, and it means a bit of caution for retail ETFs. Especially the luxury focused fund, Claymore/Robb Report Global Luxury (ROB), in which Tiffany makes up 1.5% of the holdings.  It is up 2.8% since its launch the end of July.

Tiffany has been praised for significant gains in the past nine months, however, a number of catalysts have played out. Associated Press reports that Banc of America downgraded Tiffany to a "Neutral" from a "buy". The $51 price target was kept, although retailing is down around 20% this year. Other ETFs and their year-to-date performance who may experience a slow season include:

  • SPDR S&P Retail (XRT), down 12.7%
  • PowerShares Dynamic Retail (PMR), down 17.7%
  • Retail HOLDRs (RTH), down 2.2% 

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.