Retail ETFs Catch a Bid

A sector ETF that has caught a bid lately is XRT (SPDR S&P Retail), up nearly 1% just yesterday and closing at a recent high.

The Retail sector has rebounded nicely from mid November woes following strong “Black Friday” sales by and large (for reference, XRT traded as low as $59.58 (200 day MA range) prior to Thanksgiving).

XRT has reeled in more than $225 million inside of the past five trading sessions, and trading volume in the fund swelled yesterday to about double the normal level (6.3 million shares traded yesterday). XRT follows an “equal weighted” index methodology, tracking the S&P Retail Select Industry Index, owning ninety four individual equities classified within the “Retail” space. [Consumer Discretionary ETF Hits All-Time High]

Currently, top holdings are ODP (1.51%), NFLX (1.50%), OMX (1.36%), BWS (1.35%), and ORLY (1.30%). The top three holdings, ODP, NFLX, and OMX, have all sprung to life from significantly lower lows earlier this year, in recent weeks. For example, ODP has rallied 62.90% in the trailing six month period, while NFLX is up 39.77% and OMX +116.45% respectively.

Given the recent trading activity in XRT as we head into the final shopping days of the year, we may see heightened volume in related ETFs in the space as well, including XLY (SPDR Consumer Discretionary), VCR (Vanguard Consumer Discretionary), FXD (First Trust Consumer Discretionary), and IYC (iShares DJ U.S. Consumer Services Sector).

SPDR S&P Retail

retail-etfretail-etf

For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.

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