Retail ETFs Rally on Rising Consumer Sentiment

Retail stocks and sector-related ETFs have been enjoying a greater year as strong consumer sentiment helped prop up a once ailing segment of the market.

Year-to-date, the SPDR S&P Retail ETF (NYSEArca: XRT), the largest retail-related ETF on the market, increased 16.9% and the VanEck Vectors Retail ETF (NYSEArca: RTH) advanced 19.9%.

Target Corp (NYSE: TGT) is one of many traditional brick-and-mortar retailers that have been enjoying a strong earnings season. The company revealed its best quarterly results in over a decade and recently hit two record highs since 2015, the Wall Street Journal reports.

“Like others, we’re currently benefiting from a very strong consumer environment, perhaps the strongest I’ve seen in my career,” Target’s chief executive, Brian Cornell, said on an earnings call Wednesday.

TGT makes up 1.3% of XRT’s portfolio and 4.2% of RTH’s underlying holdings.

Rising Consumer Sentiment

The ongoing strength in the U.S. economy has fueled the rising consumer sentiment.