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Halloween Less Scary This Year: 4 ETF Treats

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A greater number of Americans are gearing up for the holiday season with plans to splurge on Halloween. Masks and costumes look like the Presidential candidates have flooded the markets. Moreover, consumer confidence hit the highest level in nine years in September, according to the Consumer Confidence Board (read: Consumer Confidence Hits 9-Year High: ETF Winners).

As per the National Retail Federation, Halloween spending is expected to reach $8.4 billion, an all-time high in the survey’s 11-year history as more than 171 million Americans are planning to participate in Halloween festivities this year. This will result in an average spending of $82.93 per person, up from $74.34 last year.

Out of the total spending, Halloween shoppers will spend about $3.1 billion on costumes, $2.5 billion on candy, $2.4 billion on decorations and $390 million on greeting cards. According to the survey, about 47% of customers will purchase Halloween goods from discount stores, 36% from specialty store, 26% from supermarkets, 23% from departmental stores and 22% online.

Investors should note that social media has become the fastest growing area for Halloween campaign while print media such as magazines, catalogues still account for a substantial portion. As a result, not only retailers but social media and media companies will also benefit from the surge in spending. So betting on the ETFs from the related industries should treat investors with gains this Halloween.

Below, we have highlighted some of them:

SPDR S&P Retail ETF (XRT - Free Report)

This product tracks the S&P Retail Select Industry Index, holding 98 securities in its basket. It is widely spread across each component as each of these holds less than 1.6% of total assets. Small cap stocks dominate nearly more than half of the portfolio while the rest have been split between the other two market cap levels. In terms of sector holdings, specialty retail takes the top spot at 58% share while departmental stores, and Internet & catalog retail round off the next two spots with a double-digit allocation each. XRT is the popular and actively traded ETF in the retail space with AUM of about $436.7 million and average daily volume of around 4.5 million shares. It charges 35 bps in annual fees. The fund has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook (read: Should You Buy Retail ETFs for Q4?).

Amplify Online Retail ETF (IBUY - Free Report)

This ETF debuted in the space six months ago and has already attracted $2.8 million in its asset base. It offers global exposure to companies that derive 70% or more revenue from online and virtual retail by tracking the EQM Online Retail Index. The fund is home to 49 stocks that are widely diversified with each holding less than 4.9% of assets. Small caps dominate more than half of the portfolio while large caps and mid caps account for 26% and 21% share, respectively. The product charges 65 bps in fees per year and trades in small volumes of nearly 3,000 shares a day.

Global X Social Media Index ETF (SOCL - Free Report)

This fund offers the only pure play in the global social media space and has amassed $138.9 million in its asset base. The ETF charges 0.65% in fees and expenses, and sees moderate trading volume of roughly 55,000 shares a day. The product tracks the Solactive Social Media Index, holding 31 securities in the basket. It has large concentration on the top four firms that collectively account for over 37% allocation while other firms hold no more than 5.8% share. The ETF is focused on large cap stocks at 63%, followed by 20% in small caps and the rest in mid caps. In terms of country exposure, U.S. firms take half of the portfolio, closely followed by China (27%) and Japan (8%). The ETF has a Zacks ETF Rank of 3 with a High risk outlook (read: Twitter Acquisition Talks in the Air: Stock & ETFs Gain).

PowerShares Dynamic Media Portfolio (PBS - Free Report)

This fund tracks the Dynamic Media Intellidex Index and seeks to offer capital appreciation by investing in companies that are selected on a variety of investment merit criteria. The approach results in a small basket of 30 media stocks with none of the firms holding more than 6% share. Though large caps account for a substantial 45% of assets, small caps take the rest, with 16% going to mid-caps. Within the media sector, about 29% of the portfolio is allotted to Internet & mobile applications while cable & satellite, television & radio, advertising and publishing round off the top five with a double-digit exposure each. The product has amassed $81.8 million in its asset base while trades in light volume of about 19,000 shares a day. The ETF charges 61 bps in annual fees and has a Zacks ETF Rank of 3 with a Medium risk outlook.

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