'Tis the Season: ETFs for the Holidays | ETF Trends

It’s that time again. You’ve no doubt noticed the Christmas displays, the Thanksgiving recipe ideas, the commands to “make your holiday travel plans now!” Here are some exchange traded funds (ETFs) to get you through the season.

The past two years were disappointing for retailers. This year, however, they’ve got their fingers crossed for a turnaround. Mike Lewis for Transworld Business reports that the International Council of Shopping Centers (ICSC) forecasts that spending this holiday season will be up 3% to 3.5% over last year. If it’s true, it would be the largest increase since 2006. [ETFs Slump As Consumer Confidence Wanes.]

Jeff Miller forDiamonds.Net reports that the ICSC is  expecting holiday hiring to improve moderately over last year and overall employment growth to improve as well, which in turn should support increased spending. [Retail Sales Up, ETFs Flat.]

Terry Maxon for Dallas News says airlines could be poised to do well this season, too. That’s in part because passenger traffic is up, but it’s also because airlines have scaled back on the number of flights they offer.

ETFs that can help you take advantage of all the spending and traveling that takes place around this time of year:

  • First Trust Dow Jones Internet Index Fund (NYSEArca: FDN): We’re in the digital age, don’t you know. Many Americans shun brick and mortar operations in favor of the comfort of their own homes. FDN holds many companies that may reap the rewards of online shopping: Amazon (NASDAQ: AMZN), Ebay (NASDAQ: EBAY) and Priceline (NASDAQ: PCLN), to name a few.
  • SPDR S&P Retail (NYSEArca: XRT): XRT holds the stock of many companies that may be luring holiday shoppers, including Best Buy (NYSE: BBY), Macy’s (NYSE: M), Tiffany (NYSE: TIF) and Costco (NASDAQ: COST).
  • United States Gasoline (NYSEArca: UGA): Whether you’re flying or driving, you’ll be using gas. UGA holds a basket of gasoline futures.
  • Guggenheim  Airline ETF (NYSEArca: FAA): FAA holds airlines from around the world, and is the most direct way available to play the growth of this sector.
  • Vanguard Consumer Discretionary ETF (NYSEArca: VCR): While it’s true that consumers are still looking for bargains, there will still be some level of discretionary present-buying for the holidays. After all, who wants consumer staples wrapped in a pretty box? Companies like Amazon, Target (NYSE: TGT) and Disney (NYSE: DIS) make up this diverse ETF.

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. 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.