Is Retail Back? The Bulls Are Charging with 'RETL' Up 70% YTD

As the economy moves forward with the healing process, consumers could be more apt to open their wallets. This is leading traders to pile into the Direxion Daily Retail Bull 3X ETF (RETL), which is up 70% year-to-date.

One way the retail industry can help move on from a forgettable 2020 is to make business more agile.

“The keyword for retail in 2021 is agility the unprecedented events of 2020 showed this industry the importance of shock-proofing business,” a Forbes article explained. “Retailers need to expect the unexpected to solve the major problems experienced in the past year — and move their business forward.”

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 exchange traded fund 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. The fund has successfully been able to parry the effects of the pandemic since the sell-offs in March, giving bullish retail traders much to cheer about to end 2020.

RETL Chart

The Strengthening Movement that Is E-Commerce

Online shopping has only accelerated during the pandemic. Look to e-commerce as the primary retail outlet for consumers moving forward.

“With lockdowns and social distancing orders in place throughout the past year, it’s no surprise e-commerce’s popularity has increased at a record pace,” the Forbes article noted. “While there will always be a need for physical stores, the way retailers approach e-commerce may be very different in the coming years. For example, some retailers are already beginning to push certain product categories to e-commerce, like big, bulky multipack paper products — including paper towels and toilet tissue. It is typically easier to have these items delivered to your door than it is to lug them through a grocery store.”

“Over time, consumers can expect to see this trend become more common, as these types of products will take up less space on store shelves, and more shoppers will likely opt to buy them online,” the article added further.

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