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3 Sector ETFs to Win in Holiday Season 2023

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As we move toward the all-important holiday season, projections from market research firms are coming to the forefront. According Mastercard SpendingPulse, U.S. retail sales (excluding automotive) will likely log a year-over-year increase of 3.7% during the holiday season, running from Nov 1 to Dec 24.

This projection indicates the resilience of American consumers, who have adapted to changing economic conditions. Michelle Meyer, U.S. Chief Economist at the Mastercard Economics Institute, noted that consumers are expected to navigate the season strategically, making choices aligned with their lifestyles.

Against this backdrop, below we highlight a few retail industries that could boast higher sales in the upcoming holiday season.

Key Trends to Rule in 2023 Per Mastercard

Diverse Shopping Experiences With Focus on e-Commerce

According to Mastercard, consumers are expected to embrace an omnichannel approach to shopping, which encompasses both in-store and online purchases. E-commerce is projected to increase 6.7% year over year, while in-store sales are expected to rise 2.9% year over year.

Against this backdrop, e-Commerce ETFs like Amplify Online Retail ETF (IBUY - Free Report) and ProShares Online Retail ETF (ONLN - Free Report) are likely to win in the holiday season 2023.

Tech-Focused Gifting

The demand for electronics, gadgets and gaming products is set to rise significantly due to the continued evolution of AI, immersive experiences and digital work environments. Furthermore, consumers who purchased gadgets during the pandemic may intend to upgrade to the latest models. Electronics’ sales are anticipated to rise 6.0% year over year during the holiday season.

Notably, electronics sales gained 0.7% sequentially in August. A rise in electronics sales should go in favor of semiconductor funds and stocks. VanEck Vectors Semiconductor ETF (SMH - Free Report) should be benefited due to this trend (read: 6 ETF Areas & Stocks to Win on Upbeat August Retail Sales).

Thriving Restaurant Industry

The restaurant sector is expected to maintain its winning trajectory with a year-over-year expansion of 5.4%, beating the growth rate of grocery sales (+3.9%). Consumers are likely to dine out or participate in communal meals, activities and festivities outside the confines of their homes.

The AdvisorShares Restaurant ETF (EATZ - Free Report) is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business.

See More Zacks Research for These Tickers

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VanEck Semiconductor ETF (SMH) - free report >>

Amplify Online Retail ETF (IBUY) - free report >>

ProShares Online Retail ETF (ONLN) - free report >>

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