Moreover, other retail ETFs like the SPDR S&P Retail ETF (NYSEArca: XRT) have made all-time highs as of late–a byproduct increased retail sales data, but with triple the leverage, RETL is simply able to outperform by a wider margin.
“The economy appears to be very well-positioned to continue to grow,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. “The persistently optimistic consumer sector is doing its part to keep the growth engine going, and retailers are benefiting.”
The data continues to be positive for RETL and other retail sector ETFs as stores like Walmart are projected to do $51 billion in sales this year and target is projecting $74 billion in revenues. Online presence and delivering products to consumers in expedient fashion will continue to be key drivers in the sector moving forward, and RETL is certainly poised to gain, particularly if the current bull market can sustain its upward trajectory.
For more information on the consumer sector, visit our consumer discretionary category.