We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Consumer Confidence Rebounds in December: ETFs to Buy
Read MoreHide Full Article
Americans have been regaining confidence in the U.S. economy. This is especially true as consumer confidence bounced back in December, reversing consecutive declines in October and November to reach its highest level since April. Rising consumer confidence bodes well for household spending in the coming months and is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending.
As such, investors could tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) and SPDR S&P Retail ETF (XRT - Free Report) . These funds have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy), suggesting their outperformance in the months ahead.
The Conference Board Consumer Confidence Index climbed to 108.3 from 101.4 in November. Easing inflation and falling gasoline prices have rekindled some confidence in the economy despite recessionary fears, especially after another 50 bps rate hike by the Fed. Consumers' 12-month inflation expectations fell to 6.7%, the lowest since September 2021, from 7.1% last month. Gas prices have plunged nearly 40% to $3.11 on Dec 21, after hitting a record high in June, according to AAA.
The present situation index, which measures consumer sentiment toward current business and labor market conditions, rose to 147.2 from 138.3 last month. The expectations index, which assesses the short-term outlook for income, business and labor market conditions, jumped to 82.4 from 76.7.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 56 securities in its basket, with key holdings in Internet & direct marketing retail, specialty retail, hotels, restaurants and leisure, and automobiles with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most-popular product in this space, with AUM of $13 billion and an average daily volume of around 5 million shares. It charges 0.10% in expense ratio and has a Zacks ETF Rank #2 with a Medium risk outlook (read: Play Secret Santa With These ETFs).
Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 315 stocks in its basket. In terms of industrial exposure, Internet & direct marketing retail, automobile manufacturers and restaurants occupy the top three spots.
Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 10 bps in annual fees while volume is good at nearly 93,000 shares a day. The fund has managed $4 billion in its asset base so far. Vanguard Consumer Discretionary ETF has a Zacks ETF Rank #2 with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 327 stocks in its basket.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $957.3 million in its asset base while trading in a good volume of around 64,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 with a Medium risk outlook (read: Should You Go Bottom Fishing Big Tech ETFs Following Soros?).
Invesco S&P SmallCap Consumer Discretionary ETF targets the small-cap segment of the broad consumer discretionary space by tracking the S&P SmallCap 600 Capped Consumer Discretionary Index. It holds 87 securities in its basket, with specialty retail taking the largest share at 36.4%, while household durables, and hotels, restaurants and leisure account for double-digit exposure each.
Invesco S&P SmallCap Consumer Discretionary ETF has attracted $23.4 million in AUM and charges 29 bps in annual fees. It trades in an average daily volume of about 1,000 shares and has a Zacks ETF Rank #2 with a High risk outlook.
SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid-and small-cap retail stocks. It holds well-diversified 95 stocks in its basket. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, automotive retail, specialty stores and Internet & direct marketing retail (read: Top-Ranked ETFs to Play Fed's Seventh Rate Hike of 2022).
SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $350.4 million and an average trading volume of 4.5 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Consumer Confidence Rebounds in December: ETFs to Buy
Americans have been regaining confidence in the U.S. economy. This is especially true as consumer confidence bounced back in December, reversing consecutive declines in October and November to reach its highest level since April. Rising consumer confidence bodes well for household spending in the coming months and is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending.
As such, investors could tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) and SPDR S&P Retail ETF (XRT - Free Report) . These funds have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy), suggesting their outperformance in the months ahead.
The Conference Board Consumer Confidence Index climbed to 108.3 from 101.4 in November. Easing inflation and falling gasoline prices have rekindled some confidence in the economy despite recessionary fears, especially after another 50 bps rate hike by the Fed. Consumers' 12-month inflation expectations fell to 6.7%, the lowest since September 2021, from 7.1% last month. Gas prices have plunged nearly 40% to $3.11 on Dec 21, after hitting a record high in June, according to AAA.
The present situation index, which measures consumer sentiment toward current business and labor market conditions, rose to 147.2 from 138.3 last month. The expectations index, which assesses the short-term outlook for income, business and labor market conditions, jumped to 82.4 from 76.7.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 56 securities in its basket, with key holdings in Internet & direct marketing retail, specialty retail, hotels, restaurants and leisure, and automobiles with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most-popular product in this space, with AUM of $13 billion and an average daily volume of around 5 million shares. It charges 0.10% in expense ratio and has a Zacks ETF Rank #2 with a Medium risk outlook (read: Play Secret Santa With These ETFs).
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 315 stocks in its basket. In terms of industrial exposure, Internet & direct marketing retail, automobile manufacturers and restaurants occupy the top three spots.
Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 10 bps in annual fees while volume is good at nearly 93,000 shares a day. The fund has managed $4 billion in its asset base so far. Vanguard Consumer Discretionary ETF has a Zacks ETF Rank #2 with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 327 stocks in its basket.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $957.3 million in its asset base while trading in a good volume of around 64,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 with a Medium risk outlook (read: Should You Go Bottom Fishing Big Tech ETFs Following Soros?).
Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report)
Invesco S&P SmallCap Consumer Discretionary ETF targets the small-cap segment of the broad consumer discretionary space by tracking the S&P SmallCap 600 Capped Consumer Discretionary Index. It holds 87 securities in its basket, with specialty retail taking the largest share at 36.4%, while household durables, and hotels, restaurants and leisure account for double-digit exposure each.
Invesco S&P SmallCap Consumer Discretionary ETF has attracted $23.4 million in AUM and charges 29 bps in annual fees. It trades in an average daily volume of about 1,000 shares and has a Zacks ETF Rank #2 with a High risk outlook.
SPDR S&P Retail ETF (XRT - Free Report)
SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid-and small-cap retail stocks. It holds well-diversified 95 stocks in its basket. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, automotive retail, specialty stores and Internet & direct marketing retail (read: Top-Ranked ETFs to Play Fed's Seventh Rate Hike of 2022).
SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $350.4 million and an average trading volume of 4.5 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.