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For investors seeking momentum, VanEck Vectors Retail ETF (RTH - Free Report) is probably on radar. The fund just hit a 52-week high, and is up roughly 54.7% from its 52-week low price of $94.61/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
RTH in Focus
This fund offers exposure to the most-liquid companies involved in retail distribution, wholesalers, on-line, direct mail and TV retailers, multi-line retailers, specialty retailers, and food and other staples retailers. It is highly concentrated on Amazon (AMZN - Free Report) at 22.5% share while other firms hold no more than 11%. The ETF charges 35 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail corner of the broad consumer discretionary sector has been an area to watch lately given the expectation of stronger-than expected earnings from the traditional brick-and-mortar retailers. Total earnings for the companies in this segment that have reported so far are down 15.6% on 7.8% revenue growth, with 72.2% surpassing EPS estimates and 83.3% beating on revenues. While the growth pace is well below the four-quarter average, revenues and earnings surprises are much better than the recent quarters.
More Gains Ahead?
Currently, RTH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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Retail ETF (RTH) Hits New 52-Week High
For investors seeking momentum, VanEck Vectors Retail ETF (RTH - Free Report) is probably on radar. The fund just hit a 52-week high, and is up roughly 54.7% from its 52-week low price of $94.61/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
RTH in Focus
This fund offers exposure to the most-liquid companies involved in retail distribution, wholesalers, on-line, direct mail and TV retailers, multi-line retailers, specialty retailers, and food and other staples retailers. It is highly concentrated on Amazon (AMZN - Free Report) at 22.5% share while other firms hold no more than 11%. The ETF charges 35 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail corner of the broad consumer discretionary sector has been an area to watch lately given the expectation of stronger-than expected earnings from the traditional brick-and-mortar retailers. Total earnings for the companies in this segment that have reported so far are down 15.6% on 7.8% revenue growth, with 72.2% surpassing EPS estimates and 83.3% beating on revenues. While the growth pace is well below the four-quarter average, revenues and earnings surprises are much better than the recent quarters.
More Gains Ahead?
Currently, RTH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>