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Retail ETF (RTH) Hits New 52-Week High
VanEck Retail ETF (RTH - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 23.6% from its 52-week low price of $204.16/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
RTH in Focus
The underlying MVIS US Listed Retail 25 Index tracks the overall performance of companies involved in retail distribution, wholesalers, on-line, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. The product charges 35 bps in annual fees.
Why the Move?
Retail Sales in the United States increased by 0.5% sequentially in July to $726.3 billion. This reading followed the 0.9% increase (revised from 0.6%) recorded in June and came in line with the market expectation (as quoted on fxstreet.com). On a yearly basis, retail sales rose by 3.9%. The back-to-school season probably also favored the optimism.
More Gains Ahead?
The ETF RTH might continue its strong performance in the near term, with a positive weighted alpha of 22.95, which gives cues of a further rally.