Look to the RETL ETF to Capture a Changing Retail Industry

A changing retail sector can help tactical traders through funds like the Direxion Daily Retail Bull 3X ETF (RETL).

The retail sector got a boost thanks to strong numbers for March released a week ago by the National Retail Federation (NRF). According to the NRF, retail sales rose 7.4% in March from the month of February, excluding automobile dealers, gasoline stations, and restaurants.

“Today’s data (April 16) confirms reports that people are going out and spending and that in-store traffic has picked up,” said NRF chief economist Jack Kleinhenz in a Loss Prevention Magazine article. “After a disappointing February, there was a perfect alignment of factors supporting a surge in shopping in March. Further reopening of the economy was encouraged by economic stimulus payments, the public health situation improved with more vaccinations, employment grew and there was seasonal activity around Passover, Easter and spring break.”

RETL seeks daily investment results of 300% of the daily performance of the S&P Retail Select Industry Index. With its triple leverage, RETL gives investors the ability to:

  • Magnify short-term perspective with daily 3X leverage;
  • Go where there’s opportunity, with bull and bear funds for both sides of the trade; and
  • Stay agile, with liquidity to trade through rapidly changing markets.

The ETF invests in securities found within the index, which is a modified equal-weighted index that measures the performance of the stocks comprising the S&P Total Market Index. So far in 2021, the fund is up almost 130%.

RETL Chart

Retail Undergoing a Structural Transformation

There’s no doubt that social distancing measures altered the way consumers purchase goods and services. Consumers became even more heavily reliant on the internet for purchases from small items like toiletries to large-ticket items like cars.

“Retail is an area that has undergone a serious transformation,” a Retail Technology Innovation Hub article said. “Throughout the various lockdowns that have taken place over the past year, non-essential shops and businesses have been closed for long periods. Even when open, they have seen much lower footfall as people are more reticent about mingling in public.”

“As we have all seen this past year, large parts of consumer behavior have been motivated by concerns for their own personal health and well-being,” claims entrepreneur Dee Agarwal. “And just because vaccinations are rising, this focus will not disappear.”

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