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For investors seeking momentum, VanEck Vectors Retail ETF (RTH - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up roughly 12.5% from its 52-week low price of $75.72/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
RTH in Focus
This fund provides exposure to the 26 largest retail firms and is highly concentrated on Amazon (AMZN - Free Report) at 18.6% share while other firms hold no more than 7.6%. The ETF has key holdings in specialty retail, Internet & direct marketing, hypermarkets and departmental stores. It has amassed $52.4 million in its asset base and charges 35 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail corner of the broad consumer discretionary sector has been an area to watch lately given the deluge of robust results and fervor surrounding the holiday season that has pushed many stocks to new highs. If history is any guide, retailers have been the clear outperformers in the stock market in the week leading to Black Friday and in the days thereafter. Per Kensho, a group of S&P 500 retail stocks, on average, has generated 5% returns in the period spanning one week before to one week after Black Friday since 2007. This is compares favorably with average returns of 3% for the S&P 500 and 4.5% for consumer discretionary stocks.
More Gains Ahead?
Currently, RTH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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Retail ETF (RTH) Hits New 52-Week High
For investors seeking momentum, VanEck Vectors Retail ETF (RTH - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up roughly 12.5% from its 52-week low price of $75.72/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
RTH in Focus
This fund provides exposure to the 26 largest retail firms and is highly concentrated on Amazon (AMZN - Free Report) at 18.6% share while other firms hold no more than 7.6%. The ETF has key holdings in specialty retail, Internet & direct marketing, hypermarkets and departmental stores. It has amassed $52.4 million in its asset base and charges 35 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail corner of the broad consumer discretionary sector has been an area to watch lately given the deluge of robust results and fervor surrounding the holiday season that has pushed many stocks to new highs. If history is any guide, retailers have been the clear outperformers in the stock market in the week leading to Black Friday and in the days thereafter. Per Kensho, a group of S&P 500 retail stocks, on average, has generated 5% returns in the period spanning one week before to one week after Black Friday since 2007. This is compares favorably with average returns of 3% for the S&P 500 and 4.5% for consumer discretionary stocks.
More Gains Ahead?
Currently, RTH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>