Despite the capital markets getting racked by trade wars in May, retail sales grew 0.5 percent and data was revised higher in April to 0.3 percent, according to the Commerce Department. Economists polled by data company Reuters were forecasting a 0.6% in May, but compared to the previous time last year, retail sales actually increased 3.2 percent.
ETF plays in the retail sector include the SPDR S&P Retail ETF (NYSEArca: XRT). For investors looking to get into XRT on the cheap, now might be an opportune time to do so as the tariff-for-tariff battle between China and the U.S. are putting many of the fund’s holdings in a bind. With their revenues affected by the higher tariffs, bearish plays could also be abound, but for the more optimistic, buying on the dip is also an alternative.
XRT seeks to provide investment results that correspond generally to the total return performance of an index derived from the retail segment of a U.S. total market composite index. The index represents the retail segment of the S&P Total Market Index.
Aside from XRT, investors can also consider the following ETFs:
- ProShares Online Retail ETF (NYSEArca: ONLN): seeks investment results, before fees and expenses, that track the performance of the ProShares Online Retail Index. The index tracks retailers that principally sell online or through other non-store channels. The index uses a modified market-capitalization weighted approach, is rebalanced monthly and is reconstituted annually. Retailers may include U.S. and non-U.S. companies. To be eligible, retailers must: be classified as an online retailer, an e-commerce retailer, or an internet or direct marketing retailer, according to standard industry classification systems; have a market capitalization of at least $500 million; have a six-month daily average value traded of at least $1 million; and meet other requirements.
- Fidelity MSCI Consumer Discretionary Index ETF (FDIS): seeks to provide investment returns that correspond generally to the performance of the MSCI USA IMI Consumer Discretionary Index. The index represents the performance of the consumer discretionary sector in the U.S. equity market.
- Consumer Discret Sel Sect SPDR ETF (NYSEArca: XLY): seeks investment results that correspond to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index. The index includes securities of companies from the following industries: retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services.
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