Reports of the death of the spending-crazy consumer aren’t exaggerated, but they don’t mean that you should count out retail ETFs.
Unemployment is barely budging and there’s still a lot of consumer fear that’s keeping them from spending. How is it, then, that sales have improved? Jonah Kery for Investors Business Daily reports that September same-store sales rose 2.7%. More than three-quarters of retailers posted results that beat analysts’ estimates.
The key word here is adaptability.
There’s a new kind of retailer out there, and you can find them in certain ETFs. Who are they? They’re retailers that have adapted to the current economic climate or have carved out a niche so solid that little can seemingly crack it (think Netflix, for one).
- SPDR S&P Retail (NYSEArca: XRT): Owns CarMax, Best Buy, Walgreen’s, JC Penney
- Vanguard Consumer Discretionary ETF (NYSEArca: VCR): Owns Amazon, Comcast, Home Depot, Target
- First Trust Consumer Discovery Alpha ETF (NYSEArca: FXD): Owns CarMax, Family Dollar, Amazon and Priceline
Tisha Guerrero contributed to this article.