Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Boo! 2 ETFs That Could Offer A Taste Of The Halloween Retail Spending Spike

By Investing.com (Tezcan Gecgil/Investing.com )ETFsOct 29, 2021 12:59AM ET
www.investing.com/analysis/boo-2-etfs-that-could-offer-a-taste-of-the-halloween-retail-spending-spike-200606684
Boo! 2 ETFs That Could Offer A Taste Of The Halloween Retail Spending Spike
By Investing.com (Tezcan Gecgil/Investing.com )   |  Oct 29, 2021 12:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Autumn months typically mean increased consumer spending in the US, which puts retail stocks in the limelight. Specifically, the end of October sees many Americans shop for Halloween.

According to metrics released by the National Retail Foundation (NRF):

“Consumer spending on Halloween-related items is expected to reach an all-time high of $10.14 billion, up from $8.05 billion in 2020.”

Therefore, we introduces two exchange-traded funds (ETFs) that could benefit from the increased spending levels this Halloween season.

1. Amplify Online Retail ETF

  • Current Price: $111.09
  • 52-Week Range: $88.07 - $141.00
  • Dividend Yield: 0.55%
  • Expense Ratio: 0.65% per year

According to a recent report by the US Census Bureau:

“The estimate of US. retail e-commerce sales for the second quarter of 2021 … was $222.5 billion, an increase of 3.3% (±0.7%) from the first quarter of 2021.”

By 2024, global e-commerce sales are expected to reach almost $6.4 trillion, up from almost $2.3 trillion in 2020. The Amplify Online Retail ETF (NYSE:IBUY) invests in businesses that generate most of their revenue from online sales and benefit from e-commerce growth worldwide. The fund began trading in April 2016.

IBUY Weekly Chart.
IBUY Weekly Chart.

IBUY, which has 71 holdings, tracks the returns of the EQM Online Retail Index. The fund’s top 10 holdings account for around 26% of its net assets, which stand at $885 million.

Almost three-quarters of the stocks in the ETF are US-based. The rest come from Germany (5.5%), China (4.6%), the UK (3.95) and Japan (2.3%). In terms of the sub-sectoral breakdown, traditional retail comprises the highest portion, with 53.6%; followed by marketplace (36.6%) and travel (9.8%).

Online marketplace Etsy (NASDAQ:ETSY); online fashion retailer Revolve (NYSE:RVLV); food ordering platform DoorDash (NYSE:DASH); freelance talent platform Upwork (NASDAQ:UPWK); and Shutterstock (NYSE:SSTK), which provides photographs, videos, illustrations and visual communications editing tools, lead the names on the roster.

Over the past year, the fund is up about 13.9%, but down 4.3% year-to-date. During the pandemic, it benefitted from the strong performance of platform shares and e-commerce stocks as well as payment processors. As a result, IBUY saw a record high in mid-February, but has come under pressure since then. Potential investors could find value around these levels.

2. First Trust Nasdaq Retail ETF

  • Current Price: $35.95
  • 52-Week Range: $25.66 - $36.72
  • Dividend Yield: 0.64%
  • Expense Ratio: 0.60% per year

The First Trust Nasdaq Retail ETF (NASDAQ:FTXD) invests in the 50 retail securities in the NASDAQ US Smart Retail Index, which is reconstituted annually and rebalanced quarterly. The criteria used to choose stocks for the ETF include:

• Volatility – a stock’s trailing 12-month price fluctuation;

• Value – as expressed by cash flow to price ratio;

• Growth – the stock price appreciation over the past 12 months, assessed at regular intervals.

FTXD Weekly Chart.
FTXD Weekly Chart.

FTXD was first listed in September 2016 and has around $2.13 million in assets. In other words, it's a small fund.

Stocks from the specialty retailers segment have the highest weighting, with 39.08%. Next come diversified retailers (26.33%), apparel retailers (8.50%), drug retailers (8.46%) and home improvement retailers (6.58%). The leading 10 names account for about 45% of the fund.

Video games and entertainment products retailer GameStop (NYSE:GME), which has also become one of the leading meme stocks of 2021; retail pharmacy chain CVS Health (NYSE:CVS); retailer of automotive replacement parts and accessories AutoZone (NYSE:AZO); retail giant Walmart (NYSE:WMT); and Kroger (NYSE:KR), which operates grocery and multi-department stores; lead the names in FTXD.

Over the past 12 months, the fund is up about 34.5% and also returned 26.1% so far in 2021. It hit a record high in June. The fund’s P/E and P/S ratios stand at 18.08x and 0.76x. Interested readers could consider buying the dips.

Boo! 2 ETFs That Could Offer A Taste Of The Halloween Retail Spending Spike
 

Related Articles

Tim Knight
If You’re Right…… By Tim Knight - Jun 28, 2022

I’d like to trot out our old friend IYR (real estate ETF) once again as a prospective short-sale candidate (or, in my case, long puts, as I did acquire those today). The little...

Boo! 2 ETFs That Could Offer A Taste Of The Halloween Retail Spending Spike

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Justin Henry
Justin Henry Oct 29, 2021 1:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
any tips
Justin Henry
Justin Henry Oct 29, 2021 1:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
new here
Tajul Islam
Tajul Islam Oct 29, 2021 12:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hii Dear
Umar Sadiq
Umar Sadiq Oct 29, 2021 5:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nice and wise
Ãmííñ Sälèèyè
Ãmííñ Sälèèyè Oct 29, 2021 5:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thnks
Studd Muffin
FlipTicks Oct 29, 2021 2:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are a fraud
aamin kakal
aamin kakal Oct 29, 2021 2:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
u r geneois.i follow u and expect good tips and advice from u .thanks
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email