The retail sector ETF SPDR S&P Retail (NYSEArca: XRT) will benefit indirectly from falling crude prices, as consumers will pay less at the gas pump and have more cash-in-hand to spend. Which leads to more consumers being able to travel.The ETF is up 10% this year. [Why Retail ETFs Need to Get Back on Track]
The Guggenheim Airline (NYSEArca: FAA) is poised to gain as a drop in jet fuel will follow lower crude prices. Airlines spent $47 billion on fuel, totaling 16.4 billion gallons in 2011, according to the U.S. Bureau of Transportation. Jet fuel prices have tumbled nearly 20% from their February peak to $2.93 a gallon, reports Ho. FAA has gained 13% year-to-date.
iShares Dow Jones Transportation Average (NYSEArca: IYT) will gain as trucker’s profits increase. The stocks in IYT cover railroads, truckers, airlines, marine shippers and delivery services. IYT is up 1.2% year-to-date. [ETF Chart of the Day: IYT]
Other oil-focused ETFs that have gained since crude has slumped:
- United States Short Oil (NYSEArca: DNO) This fund tracks the opposite moves of light, sweet crude oil. The ETF is up 16% year-to-date, while United States Oil Fund (NYSEArca: USO) is down 16%. [Oil ETF Plays with Extra ‘Oomph’]
- ProShares Short Oil & Gas (NYSEArca: DDG) DDG tracks the opposite moves of the exploration fund iShares Dow Jones US Energy Sector ETF (NYSEArca: IYE). When there is a supply gut, exploration is not a top priority. DDG is up 4% in 2012 while IYE has lost 6.1%. [Why Oil ETFs Are Rising]
Tisha Guerrero contributed to this article.