Retail ETFs in Focus Ahead of Big-Box Q2 Earnings

Retail Sector Overview - The retail sector is currently in focus with earnings releases from major retailers such as Wal-Mart, Home Depot, Lowe's, and Target, along with Nordstrom and Kohl's [1] - So far, 23 out of 36 retailers in the S&P 500 Index have reported earnings, showing a 26.2% increase in earnings year-over-year on a 6.1% rise in revenues, with 52.2% exceeding EPS estimates and 34.8% surpassing revenue estimates [1] - The overall retail sector is projected to report earnings growth of 26.5% alongside a 6.1% revenue growth [1] Individual Retailer Earnings Insights - Wal-Mart: Earnings ESP of -0.93% and Zacks Rank 2, with no earnings estimate revision in the past 30 days; average earnings surprise of 8.34% over the last four quarters; scheduled to report on Aug 15 [2] - Home Depot: Earnings ESP of -0.94% and Zacks Rank 3, with a negative earnings estimate revision of 4 cents in the past week; average earnings surprise of 1.99% over the last four quarters; scheduled to report on Aug 13 [2] - Target: Earnings ESP of +0.37% and Zacks Rank 3, with a positive earnings estimate revision of 1 cent; average earnings surprise of 22.43% over the last four quarters; scheduled to report on Aug 21 [3] - Lowe's: Earnings ESP of -0.44% and Zacks Rank 4, with a negative earnings estimate revision of 2 cents; average earnings surprise of 2.83% over the last four quarters; scheduled to report on Aug 20 [3] - Nordstrom: Earnings ESP of -7.69% and Zacks Rank 3, with a positive earnings estimate revision of 1 cent; average earnings surprise of -3.59% over the last four quarters; scheduled to report on Aug 27 [4] - Kohl's: Earnings ESP of +21.65% and Zacks Rank 5, with a negative earnings estimate revision of 6 cents; average earnings surprise of -123.19% over the last four quarters; scheduled to report on Aug 28 [4] ETFs in Focus - SPDR S&P Retail ETF (XRT): Tracks the S&P Retail Select Industry Index, holding 77 diversified stocks with no single stock exceeding 2% of the portfolio; AUM of $457.6 million and average trading volume of 5 million shares; charges 35 bps in annual fees and has a Zacks ETF Rank 3 [5][6] - **VanEck Vectors Retail ETF (RTH)**: Tracks the MVIS US Listed Retail 25 Index, focusing on the 26 largest retail firms; AUM of$200.3 million and average trading volume of 4,000 shares; charges 35 bps in annual fees and has a Zacks ETF Rank 2 [7]