For investors seeking momentum, VanEck Vectors Retail ETF (V:RTH) is probably on radar now. The fund just hit a 52-week high, which is up over 22% from its 52-week low price of $66.66/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
RTH focuses on the retail segment of the U.S. market. RTH charges investors 35 basis points a year in fees and has top holdings in Amazon (NASDAQ:AMZN), Home Depot (NYSE:HD) and Wal-Mart (NYSE:WMT) (see all consumer discretionary ETFs here).
Why the Move?
A slew of upbeat retail earnings from Macy’s (NYSE:M) , Kohl’s Corp. (NYSE:KSS) and raised guidance by Nordstrom Inc. (NYSE:JWN) acted as a cornerstone for the entire space. Investors should also note that retail sales grew for the third consecutive month in June. Wage gains may have helped in boosting retail sales lately. All these boosted RTH.
More Gains Ahead?
The fund has a positive weighted alpha of 7.26. Since a positive weighted alpha hints at more gains, this surging ETF can be tried a little further.
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VANECK-RETAIL (RTH): ETF Research Reports
NORDSTROM INC (JWN): Free Stock Analysis Report
MACYS INC (M): Free Stock Analysis Report
KOHLS CORP (KSS): Free Stock Analysis Report
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