More Pain Could be Coming for Traditional Retail ETFs

Other consumer discretionary and retail ETFs have been thriving, namely those with heavy tilts toward e-commerce names.

The trend away from traditional department stores and apparel retailers to online shopping destinations should benefit the Amplify Online Retail ETF (NasdaqGM: IBUY), which debuted last year. IBUY, which is comprised of global companies that generate at least 70% of revenue from online or virtual sales, has been one of the best-performing retail ETFs since its inception.

IBUY provides exposure to many familiar online names, such as WayFair Inc (NYSE: W), Etsy (NasdaqGS: ETSY), FTD Companies (NasdaqGS: FTD), Overstock Com Inc (NasdaqGS: OSTK) and Priceline (NasdaqGS: PCLN).

“Target on Tuesday posted its worst day of trading in years following a disappointing earnings announcement. The multinational earnings announcement fell short on revenue, comparable store sales and its full-year 2017 forecast. Sales also declined for its sixth straight quarter. Target is down nearly 19 percent year to date,” according to CNBC.

For more information on the consumer sector, visit our consumer discretionary category.