7 Retail ETFs for the Holidays

The past few years have not been kind to retail stocks, with the ascension of Amazon.com (AMZN) coming at the expense of numerous brick-and-mortar stores.

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The past few years have not been kind to retail stocks, with the ascension of Amazon.com (AMZN (opens in new tab)) coming at the expense of numerous brick-and-mortar stores. Even diversified retail ETFs haven’t been spared, with many posting significantly worse returns than the Standard & Poor’s 500-stock index. But the industry could be ready to turn the corner.

Big-picture, traditional retail companies are becoming more adept at peddling their wares online and are at least starting to push back. Walmart (WMT (opens in new tab)) bought Jet.com and numerous other e-commerce operators over the past few years, igniting explosive growth in its online sales. And Williams-Sonoma's (WSM (opens in new tab)) website now drives more than half of the company's revenues.

Also, Black Friday and the holiday season could provide a boost to the entire industry. Deloitte, Kantar Retail and the National Retail Federation are all forecasting increases of between 3.7% and 4.5% in holiday sales for 2017. (Kiplinger is forecasting a 15% jump in e-commerce sales for the full year.) Moreover, retail stocks have developed a trend of slightly outperforming the broader market since the end of the 2007-09 bear market.

This could trigger at least a short-term reversal of fortunes for a handful of retail funds – including those that have more invested in e-commerce operators, as well as those that incorporate other areas of the consumer space. Check out these seven retail ETFs that may perk up for the holidays.

Data is as of Nov. 8, 2017. Click on ticker-symbol links in each slide for current share prices and more. Yields represent the trailing 12-month yield, which is a standard measure for equity funds.

Kyle Woodley
Senior Investing Editor, Kiplinger.com

Kyle is senior investing editor for Kiplinger.com. As a writer and columnist, he also specializes in exchange-traded funds. He joined Kiplinger in September 2017 after spending six years at InvestorPlace.com, where he managed the editorial staff. His work has appeared in several outlets, including U.S. News & World Report and MSN Money, he has appeared as a guest on Fox Business Network and Money Radio, and he has been quoted in MarketWatch, Vice and Univision, among other outlets. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.