Retail ETFs continue to under-perform market indexes for the year as the hits keep coming in the sector. Today's dismantling of Best Buy follows up a relentless string of guidance cuts from apparel sellers and department store chains.
Though many companies are taking advantage of their vibrant e-commerce channels, in most cases it's not enough to make up for soft store traffic.
Weakness at malls in particular is a risk for the group. In that vein, five of the top ten holdings (FRAN, ANF, M, FINL, CAB) of the S&P Retail ETF (XRT) are companies that frequently set up shop at or near malls.