Back to top

Image: Bigstock

Spooked by COVID-19? Track 3 ETFs & Stocks for Halloween Treats

Read MoreHide Full Article

Gone are the days when the event of Halloween was a spooky one. Now, Halloween is not specific to kids dressing up as ghosts and ghouls, and trick-or-treating. It is more of a party event.Halloween now makes up about $4.6 billion in sales annually, per the National Retail Federation(NRF). 

Inside Halloween Spending This Year 

As estimated by NRF, Americans will likely spend a decent $8.05 billion this year on Halloween celebration, which is slightly down from $8.78 billion estimated for last year. The momentum, in fact, already slowed in recent years as 2017 and 2018 saw at least $9 billion in spending.

About 58% of the surveyed consumers plan to celebrate Halloween this year, per NRF. Average spending per person is expected to hit a record high of $92.12 (considerably up from $86.27 in 2019). So, we can see that COVID-19 fears could not undermine consumers’ confidence fully.

About 96% will likely shell out on candies. About 75% of the planned purchases will be done on decorations, followed by 65% on costumes and 40% on greetings cards.

Out of more than 148 million U.S. adults who plan to celebrate the occasion, 53% will decorate homes (up from 49% last year), 46% plan to carve a pumpkin (up from 44% last year) and 18% (up from 17% in 2019) will get their pets to don Halloween costume, per NRF.

About 22% will throw or attend a Halloween party, 23% will take children trick-or-treating and 62% will hand out candies. However, percentage of participation in these celebrations posted decline from last year probably because these involve less social distancing.

Needless to say, retail sales will be on a roll in the upcoming days and put the following ETFs and stocks in focus.

ETF Picks

VanEck Vectors Retail ETF (RTH - Free Report)

Several discount retailers like Costco (COST), Ross (ROST), Dollar General (DG - Free Report) and Wal-Mart (WMT) have solid exposure to this fund.

Global X Social Media ETF (SOCL - Free Report)

Consumers normally will look for the perfect costume idea online. Pinterest Facebook (FB) and YouTube are some of the platforms where people search for Halloween ideas. So, online ETF SOCL is highly in focus now.

ProShares Pet Care ETF (PAWZ - Free Report)

Pet care has surged amid the pandemic. Halloween will not be an exception. This very well makes PAWZ a buy. The fund consists of U.S. and international companies that potentially stand to benefit from interest in, and resources spent on, pet ownership (read: ProShares Brings Pet-Friendly ETF).

Stock Picks

Dollar General Corporation (DG - Free Report)

Discount stores are busy destinations for Halloween shopping. Dollar General is one of the largest discount retailers in the United States. The stock has a Zacks Rank #2 (Buy) with a VGM Score of B, at the time of writing.

The Hershey Company (HSY - Free Report)

Candy and chocolate sales are hot leading up to Halloween. The Zacks Rank #3 (Hold) company is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery.

Amazon.com Inc. (AMZN - Free Report)

With all the celebration around, who can get forget Amazon – a hot destination of online shopping for costumes, home decor and candies?  The stock has a Zacks Rank #3.

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 >>

Published in