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Retail Sales Gain Steam in August: 4 ETF Areas to Win

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The U.S. retail sales inched up 0.6% sequentially in August 2025, the same as an upwardly revised 0.6% rise in July and beating market expectations of a 0.2% gain, as quoted on Tradingeconomics. The back-to-school season shopping probably boosted sales in the month.

Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, gained 0.7% following a 0.5% uptick and surpassed expectations of 0.4%, the above-mentioned Tradingeconomics article reported.

Below we highlight a few areas and the related ETFs and stocks that may benefit handsomely from the retail sales.

Winning Areas

Online Retailers

Nonstore retailers (e.g., online sales) saw a 2% sequential increase and an 10.1% yearly gain (per government data).

ProShares Online Retail ETF (ONLN - Free Report) – The ProShares Online Retail Index is a specialized retail index that tracks retailers principally selling online or through other non-store channels. The fund charges 58 bps in fees.

Amazon.com (AMZN - Free Report) – Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. The stock has a Zacks Rank #3 (Hold).

Clothing Stores

Sales gained 1% sequentially and 8.3% year over year in August 2025.

SPDR S&P Retail ETF (XRT - Free Report) – The fund gives exposure to U.S. retail stocks. Apparel retail takes about 21% of the fund. The fund charges 35 bps in fees.

Genesco (GCO - Free Report) – The Zacks Rank #1 (Strong Buy) company is a specialty retail and branded company, which sells footwear and accessories in retail stores throughout the United States, Canada, the United Kingdom and the Republic of Ireland.

Sporting Goods, Hobby, Musical Instrument, & Books

The segment saw a 0.8% sequential gain in sales. The segment’s sales were 4.7% higher year over year.

As far as the ETF route is concerned, broad-based retail ETFs like Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) and VanEck Retail ETF (RTH - Free Report) should fit the bill.

DICK'S Sporting Goods (DKS - Free Report) – The company operates as a sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc. The stock has a Zacks Rank #3.

Food Services & Drinking Places

Sales at food services and drinking places gained 0.7% sequentially in August and rose 6.5% year over year.

AdvisorShares Restaurant ETF (EATZ - Free Report) – The AdvisorShares Restaurant ETF 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. The fund charges 99 bps in fees.

BJ's Restaurants (BJRI - Free Report) – BJ’s Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. The stock has a Zacks Rank #1.

 


 

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