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Thanksgiving Weekend Sales Hit a Record: ETFs to Tap
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Americans have spent considerably this year over the five-day Thanksgiving weekend lured by significant discounts across various categories, including beauty products, toys and electronics.
The record Thanksgiving weekend sales will likely boost several ETFs, especially the ones that are likely to benefit from the surge in consumer spending. The retail sector is obviously the biggest beneficiary. The increase in online sales also boosts technology and payment processing sectors, making the related ETFs attractive.
SPDR S&P Retail ETF (XRT - Free Report) , Amplify Online Retail ETF (IBUY - Free Report) , ProShares Online Retail ETF (ONLN - Free Report) , ETFMG Prime Mobile Payments ETF (IPAY - Free Report) and Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) are set to make the most of the record Thanksgiving weekend spending.
According to a survey by the National Retail Federation (“NRF”), more than 200 million shoppers engaged in in-store and online purchases over the Thanksgiving weekend (Thanksgiving Day through Cyber Monday). This represents about 2% growth from the previous year and an increase from the NRF's initial estimates of 182 million. Approximately 121.4 million people visited physical retail locations, while 134.2 million opted for online shopping. So far this season, from Nov 1 to Cyber Monday, consumers have spent $109.3 billion online, up 7.3% year over year.
On average, consumers spent $321.41 on holiday-related purchases during the five-day period compared with $325.44 last year. The top destinations for Thanksgiving weekend shoppers were online (44%), grocery stores and supermarkets (42%), department stores (40%), clothing and accessories stores (36%) and electronics stores (29%). The top gifts purchased during the five-day period included clothing and accessories, toys, gift cards, books, video games, and personal care or beauty items (read: 5 ETFs to Binge on This Thanksgiving Week).
Black Friday remained the most popular day for in-store shopping, with 76.2 million shoppers flocking to brick-and-mortar locations, per NRF. Black Friday also continued its dominance as the most popular day for online shopping, with approximately 90.6 million consumers making online purchases.
With about half of Americans' holiday shopping left untapped, the NRF expects retail sales growth of 3-4% during the full November-December holiday season, saying consumers will continue to look for big promotions and bargains.
Per Adobe Analytics, online sales rose 7.8% to a record high of $38 billion, indicating a robust start to the holiday shopping season. Cyber Monday was the biggest spending day, with sales climbing 9.6% to a record $12.4 billion as shoppers clicked “buy” on Hot Wheels toys, PlayStation 5, smartwatches and kitchen appliances. Adobe said discounts peaked at 31% for electronics and at 27% for toys on Cyber Monday. It expects total spending for the Thursday-Monday period, called Cyber Week, to be as much as $38.1 billion, an increase from its earlier forecast of $37.2 billion.
SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid and small-cap stocks. It holds well-diversified 78 stocks in its basket, with none making up for more than 2.4% share. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, specialty stores, automotive retail and broadline retail (read: A Look at Retail ETFs Post Q3 Earnings).
SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $419.3 million and an average trading volume of 7.8 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Amplify Online Retail ETF offers global exposure to companies with significant revenues from the online retail business, traditional online retail, online travel, online marketplace and omni channel retail by tracking the EQM Online Retail Index. IBUY holds 72 stocks in its basket, with none accounting for more than 3.7% of assets. Amplify Online Retail ETF has the largest allocation in online retail at 39% and online marketplace at 38%.
Amplify Online Retail ETF has attracted $177.9 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 13,000 shares.
ProShares Online Retail ETF offers exposure to the companies that principally sell online or through other non-store channels and then zeros in on the companies reshaping the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. ONLN is highly concentrated on the top firm, while the other firms hold no more than 8% of the assets.
ProShares Online Retail ETF has accumulated $98.3 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 18,000 shares.
ETFMG Prime Mobile Payments ETF is the first ETF to target the mobile payments industry. It follows the Prime Mobile Payments Index and capitalizes on the shift from credit card and cash transactions to digital and electronic systems. ETFMG Prime Mobile Payments ETF holds 53 stocks in its basket, with each making up 6.2% of assets (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
ETFMG Prime Mobile Payments ETF has AUM of $304.9 million and charges 75 bps in annual fees. It trades in an average daily volume of 42,000 shares.
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 86 securities in its basket, with specialty retail taking the largest share at 33.9%, while household durables, and hotels, restaurants and leisure account for double-digit exposure each (read: 5 Reasons Why Consumer Discretionary ETFs Are a Buy Now).
Invesco S&P SmallCap Consumer Discretionary ETF has attracted $30.3 million in AUM and charges 30 bps in annual fees. It trades in an average daily volume of about 2,000 shares and has a Zacks ETF Rank #2 with a High risk outlook.
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Thanksgiving Weekend Sales Hit a Record: ETFs to Tap
Americans have spent considerably this year over the five-day Thanksgiving weekend lured by significant discounts across various categories, including beauty products, toys and electronics.
The record Thanksgiving weekend sales will likely boost several ETFs, especially the ones that are likely to benefit from the surge in consumer spending. The retail sector is obviously the biggest beneficiary. The increase in online sales also boosts technology and payment processing sectors, making the related ETFs attractive.
SPDR S&P Retail ETF (XRT - Free Report) , Amplify Online Retail ETF (IBUY - Free Report) , ProShares Online Retail ETF (ONLN - Free Report) , ETFMG Prime Mobile Payments ETF (IPAY - Free Report) and Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) are set to make the most of the record Thanksgiving weekend spending.
According to a survey by the National Retail Federation (“NRF”), more than 200 million shoppers engaged in in-store and online purchases over the Thanksgiving weekend (Thanksgiving Day through Cyber Monday). This represents about 2% growth from the previous year and an increase from the NRF's initial estimates of 182 million. Approximately 121.4 million people visited physical retail locations, while 134.2 million opted for online shopping. So far this season, from Nov 1 to Cyber Monday, consumers have spent $109.3 billion online, up 7.3% year over year.
On average, consumers spent $321.41 on holiday-related purchases during the five-day period compared with $325.44 last year. The top destinations for Thanksgiving weekend shoppers were online (44%), grocery stores and supermarkets (42%), department stores (40%), clothing and accessories stores (36%) and electronics stores (29%). The top gifts purchased during the five-day period included clothing and accessories, toys, gift cards, books, video games, and personal care or beauty items (read: 5 ETFs to Binge on This Thanksgiving Week).
Black Friday remained the most popular day for in-store shopping, with 76.2 million shoppers flocking to brick-and-mortar locations, per NRF. Black Friday also continued its dominance as the most popular day for online shopping, with approximately 90.6 million consumers making online purchases.
With about half of Americans' holiday shopping left untapped, the NRF expects retail sales growth of 3-4% during the full November-December holiday season, saying consumers will continue to look for big promotions and bargains.
Per Adobe Analytics, online sales rose 7.8% to a record high of $38 billion, indicating a robust start to the holiday shopping season. Cyber Monday was the biggest spending day, with sales climbing 9.6% to a record $12.4 billion as shoppers clicked “buy” on Hot Wheels toys, PlayStation 5, smartwatches and kitchen appliances. Adobe said discounts peaked at 31% for electronics and at 27% for toys on Cyber Monday. It expects total spending for the Thursday-Monday period, called Cyber Week, to be as much as $38.1 billion, an increase from its earlier forecast of $37.2 billion.
ETFs in Focus
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 stocks. It holds well-diversified 78 stocks in its basket, with none making up for more than 2.4% share. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, specialty stores, automotive retail and broadline retail (read: A Look at Retail ETFs Post Q3 Earnings).
SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $419.3 million and an average trading volume of 7.8 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Amplify Online Retail ETF (IBUY - Free Report)
Amplify Online Retail ETF offers global exposure to companies with significant revenues from the online retail business, traditional online retail, online travel, online marketplace and omni channel retail by tracking the EQM Online Retail Index. IBUY holds 72 stocks in its basket, with none accounting for more than 3.7% of assets. Amplify Online Retail ETF has the largest allocation in online retail at 39% and online marketplace at 38%.
Amplify Online Retail ETF has attracted $177.9 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 13,000 shares.
ProShares Online Retail ETF (ONLN - Free Report)
ProShares Online Retail ETF offers exposure to the companies that principally sell online or through other non-store channels and then zeros in on the companies reshaping the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. ONLN is highly concentrated on the top firm, while the other firms hold no more than 8% of the assets.
ProShares Online Retail ETF has accumulated $98.3 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 18,000 shares.
ETFMG Prime Mobile Payments ETF (IPAY - Free Report)
ETFMG Prime Mobile Payments ETF is the first ETF to target the mobile payments industry. It follows the Prime Mobile Payments Index and capitalizes on the shift from credit card and cash transactions to digital and electronic systems. ETFMG Prime Mobile Payments ETF holds 53 stocks in its basket, with each making up 6.2% of assets (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
ETFMG Prime Mobile Payments ETF has AUM of $304.9 million and charges 75 bps in annual fees. It trades in an average daily volume of 42,000 shares.
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 86 securities in its basket, with specialty retail taking the largest share at 33.9%, while household durables, and hotels, restaurants and leisure account for double-digit exposure each (read: 5 Reasons Why Consumer Discretionary ETFs Are a Buy Now).
Invesco S&P SmallCap Consumer Discretionary ETF has attracted $30.3 million in AUM and charges 30 bps in annual fees. It trades in an average daily volume of about 2,000 shares and has a Zacks ETF Rank #2 with a High risk outlook.