Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Here’s Why Retail Stocks Could Underperform Over the Next Year

Published 09/20/2021, 11:15 AM
Updated 09/20/2021, 12:30 PM
© Reuters.  Here’s Why Retail Stocks Could Underperform Over the Next Year

Retailers have outperformed in 2021 due to a unique mix of factors. They face some significant challenges in 2020 so investors should consider taking profits or even betting against the sector with this ETF.One interesting development in 2021 has been the outperformance of retailers who derive the bulk of their revenues from physical stores rather than e-commerce. The best illustration of this dynamic is the ProShares Long Online/Short Stores ETF (CLIX).

CLIX invests in e-commerce companies like Amazon (NASDAQ:AMZN), Chewy (NYSE:CHWY), and Wayfair (NYSE:W), while it shorts the stocks of retailers who derive the bulk of revenues from physical stores.

CLIX made its debut in September of last year and soared during the most acute portion of the pandemic. However, since mid-February, it’s given back these gains and is down 30% from its peak as physical retailers have outperformed.

Continue reading on StockNews

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.