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Should You Invest in the SPDR S&P Retail ETF (XRT)?
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The SPDR S&P Retail ETF (XRT - Free Report) was launched on 06/19/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Discretionary - Retail segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Retail is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $694.63 million, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Retail segment of the equity market. XRT seeks to match the performance of the S&P Retail Select Industry Index before fees and expenses.
The S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Retail Index is a modified equal weight index.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.80%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 86.60% of the portfolio, followed by Consumer Staples.
Looking at individual holdings, Revolve Group Inc Class A (RVLV - Free Report) accounts for about 1.27% of total assets, followed by Buckle Inc. (BKE - Free Report) and Etsy Inc. (ETSY - Free Report) .
The top 10 holdings account for about 11.64% of total assets under management.
Performance and Risk
Year-to-date, the SPDR S&P Retail ETF has gained about 41.79% so far, and is up roughly 74.55% over the last 12 months (as of 10/07/2021). XRT has traded between $49.84 and $98.18 in this past 52-week period.
The ETF has a beta of 1.38 and standard deviation of 32.48% for the trailing three-year period, making it a medium risk choice in the space. With about 108 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Retail ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XRT is an excellent option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
ProShares Online Retail ETF (ONLN - Free Report) tracks PROSHARES ONLINE RETAIL INDEX and the Amplify Online Retail ETF (IBUY - Free Report) tracks EQM Online Retail Index. ProShares Online Retail ETF has $817.75 million in assets, Amplify Online Retail ETF has $915.56 million. ONLN has an expense ratio of 0.58% and IBUY charges 0.65%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the SPDR S&P Retail ETF (XRT)?
The SPDR S&P Retail ETF (XRT - Free Report) was launched on 06/19/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Discretionary - Retail segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Retail is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $694.63 million, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Retail segment of the equity market. XRT seeks to match the performance of the S&P Retail Select Industry Index before fees and expenses.
The S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Retail Index is a modified equal weight index.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.80%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 86.60% of the portfolio, followed by Consumer Staples.
Looking at individual holdings, Revolve Group Inc Class A (RVLV - Free Report) accounts for about 1.27% of total assets, followed by Buckle Inc. (BKE - Free Report) and Etsy Inc. (ETSY - Free Report) .
The top 10 holdings account for about 11.64% of total assets under management.
Performance and Risk
Year-to-date, the SPDR S&P Retail ETF has gained about 41.79% so far, and is up roughly 74.55% over the last 12 months (as of 10/07/2021). XRT has traded between $49.84 and $98.18 in this past 52-week period.
The ETF has a beta of 1.38 and standard deviation of 32.48% for the trailing three-year period, making it a medium risk choice in the space. With about 108 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Retail ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XRT is an excellent option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
ProShares Online Retail ETF (ONLN - Free Report) tracks PROSHARES ONLINE RETAIL INDEX and the Amplify Online Retail ETF (IBUY - Free Report) tracks EQM Online Retail Index. ProShares Online Retail ETF has $817.75 million in assets, Amplify Online Retail ETF has $915.56 million. ONLN has an expense ratio of 0.58% and IBUY charges 0.65%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.