Core Viewpoint - The retail sector is experiencing significant attention as major retailers prepare to report their earnings, with expectations of strong growth in both earnings and revenues [1][2]. Earnings Performance - 23 out of 34 retailers in the S&P 500 Index have reported earnings, showing a 17.3% increase compared to the same period last year, driven by a 6.3% rise in revenues [2]. - The retail sector is projected to achieve an overall earnings growth of 18% alongside a revenue growth of 6.3% [2]. - Traditional retail ETFs, such as SPDR S&P Retail ETF (XRT) and VanEck Vectors Retail ETF (RTH), have both gained nearly 5% over the past month [2]. Individual Retailer Insights - Home Depot has an Earnings ESP of +4.09% and a Zacks Rank of 2, with a positive earnings estimate revision of 382.5 million and an average trading volume of 4 million shares, with an annual fee of 35 basis points [12]. - VanEck Vectors Retail ETF (RTH) tracks the MVIS US Listed Retail 25 Index, focusing on the largest retail firms, with nearly 21% exposure to the top firm [13]. - VanEck Vectors Retail ETF has an AUM of $228.5 million and trades at an average volume of 2,000 shares per day, also charging 35 basis points in annual fees [14].
Retail ETFs in Focus Ahead of Big-Box Q3 Earnings