Good Friday and CyberMonday are just around the corner, as Wall Street kicks off the festive Thanksgiving weekend. Friday will bring the beginnings of the holiday shopping season, with more information about the initial results start hitting the wires at the end of the week.
This puts an emphasis on exchange-traded funds associated with real estate, ecommerce and consumer discretionary goods. At the same time, investors will also be looking at how to manage shipping and handling ETFs, as the industry is in the midst of a holiday market.
Good Friday and Cyber Monday are two of the busiest days of the year. The starting point is popular retail names such as Macy’s (M), Kohl’s Corporation (KSS), Gap (GPS), Target (TGT) and Walmart (WMT), among other smaller names. Beyond traditional brick-and-mortar names, online giants such as Amazon ( AMZN ), Alibaba ( BABA ) and eBay ( EBAY ) will also be on the lookout.
For a variety of ways to play the upcoming Black Friday data, retail funds, such as the SPDR S&P Retail ETF (NYSEARCA:XRTand the VanEck Retail ETF (NASDAQ: RTH), have a mixed group of well-known commercial products.
XRT and RTH are similar in nature as they both offer access to the market. However, RTH has outperformed XRT in 2022. Annual RTH is -13.8% while XRT is -28.1%. Additionally, both funds are associated with an interest rate of 0.35% and combined have over $586M in assets under management.
Two other ETFs on the radar are the ecommerce-focused Amplify Online Retail ETF (IBUY) and the ProShares Online Retail ETF (ONLN). Both lost heavily in 2022 and IBUY the bottom 52.5% and ONLN download and 46.9%.
Company recommendations Consumer Discretionary Goods ETFs
The discretionary segment of consumers is another interesting segment as holiday shopping is expected to take off. Tesla ( TSLA ) is one of the biggest names in the group, although Elon Musk’s EV maker won’t be swayed to enter Black Friday data. However, names like Nike (NKE) could see a move based on holiday shopping details.
Turning to ETFs, consumer discretionary funds that can be found to be close to price movements are the Consumer Discretionary Select Sector SPDR Fund.NYSEARCA: XLYVanguard Consumer Discretionary ETF stock price historyNYSEARCA: VCR), Fidelity MSCI Consumer Discretionary Index ETF (FDIS), and Invesco Dynamic Leisure & Entertainment ETF (PEJ).
Shipping & Freight ETFs
As goods and services leave the shelves, shipping and delivery companies such as FedEx ( FDX ) and UPS ( UPS ), along with other product and transportation names, can participate. Exchange-traded funds that track this sector include the iShares US Transportation ETF (IYT), the Pacer Industrials and Logistics ETF (SHPP), the US Global Sea to Sky Cargo ETF (SEA) and the SonicShares Global Shipping ETF (BOAT).
In more stock market news, major markets opened a shortened trading week, as they followed global trends as concerns grew that China would return to zero-COVID.