A Few New Retail ETF Investing Options

Recent data reports and economic indicators have been mixed when it comes to the health of the American consumer. This has led some investors to think retail stocks are undervalued, while other investors believe they are overvalued. So whether you fall into the camp that thinks the next recession is “just right around the corner” or that the poor retail sales figures reported in December were not a sign the economy is struggling, but simply a blip in the data caused because of the government shutdown; there are a few newer Retail ETFs which give you the option to invest regardless of the way you think the market is headed.

The first place to start looking if you want to be long retail is with the SPDR S&P Retail ETF (XRT). The XRT would be most investors first choice if you are looking for plain vanilla long Retail ETF investing. XRT has been around since 2006; it has a lower than average expense ratio, when compared to others on this list, at 0.35%. IT has $250 million in assets, 96 holdings and is equally-weighted and draws stocks from the S&P Total Market Index, not just the S&P 500. It also invests in both e-commerce retailers and brick-and-mortar retailers.

Since most people would agree retails future is more online, the most basic ‘online’ Retail ETF is the Amplify Online Retail ETF (IBUY). IBUY has an inception date of April 20th, 2016, and offers equally weighted, well-diversified exposure to global online retailers. Firms must derive 70% of their revenues from online sales and can be any size in terms of market-cap (subject to the standard typical minimum size and liquidity constraints). The fund has 75% of its assets in US-based companies and 25% in foreign stocks. IBUY has an expense ratio of 0.65%, which is on the ‘high’ side, but considering the exposure the fund offers, it is not unreasonable. IBUY currently has $275 million in assets spread out over its 42 different holdings, which have a weighted average market cap of $52 billion. Wayfair (W), Etsy (ETSY), eBay (EBAY) and PayPal (PYPL) are four of the funds top 10 holdings, with none representing more than 5% of the fund. Continue reading "A Few New Retail ETF Investing Options"

Top ETFs For The First Half Of 2018

2018 has been a wild year with the bursting of the Bitcoin Bubble, some President Trump induced rallies and declines, trade war fears, North Korean diplomacy and the Facebook data scandal. But most all of, after the stock market rallying for years, its beginning to show signs of sluggishness as the S&P 500 is up a mere 0.84% during the first half of 2018.

But despite the weakness of the overall market, some investors, with the help of a few Exchange Traded Funds have made money during the first half of the year. Let us take a look at the top four, non-leveraged, non-VIX ETF’s during the first half of 2018.

The best performing non-leveraged, non-VIX ETF was the Invesco S&P SmallCap Health Care ETF (PSCH) which rose by 30.62%. Over the last 12 months, PSCH is up more than 45% after climbing an additional 16% during the most recent three months. The fund owns small cap stocks which operate in the healthcare sector and currently more then 75% of the assets are in companies that have a market cap smaller than $2.7 billion. The fund tends to lean towards healthcare equipment companies and healthcare providers more so than drug companies. The averagely weighted market cap is just $2.5 billion. The fund currently has $752 million in assets under management and 74 holdings. The top three holdings are Chemed Corp. (CHE), Haemonetics Corp. (HAE), and Neogen Corp. (NEOG). The funds top ten stocks make up 33% of assets, and it will cost an investor 0.29% to own PSCH on a yearly basis.

An aging population which is living longer than any other generation before it tends to be good for the healthcare industry. While PSCH may not end the year as the top ETF, it is indeed one you could buy now and feel comfortable owning for years to come. Continue reading "Top ETFs For The First Half Of 2018"