$1 Trillion Holiday Season Sales Haul: ETFs to Gain Momentum

Core Insights - The holiday season is a significant driver for the U.S. retail sector, with expectations of retail sales exceeding $1 trillion from November 1 to December 31, presenting investment opportunities [2][7] - Investing in Exchange-Traded Funds (ETFs) that encompass a range of retail stocks is suggested as a more diversified approach compared to single stock investments [2][10] Retail Performance - Historical data shows leading retailers like Amazon, Walmart, and Costco have consistently performed well during the holiday season, with Amazon reporting record sales during its Black Friday Week and Cyber Monday events in 2024 [4] - Walmart experienced a 20% year-over-year increase in online sales for the period from November 2 to December 26, 2024, while Costco reported a 7.5% sales growth for the twelve weeks ending November 24, 2024 [5] - Shopify merchants achieved record sales of $11.5 billion over the Black Friday-Cyber Monday weekend, marking a 24% increase from the previous year [6] ETF Recommendations - VanEck Retail ETF (RTH): With net assets of $256.76 million, it provides exposure to 25 major retailers, including Amazon (21.07%), Walmart (9.32%), and Costco (7.65%), and has gained 13.2% year to date [12] - Global X E-commerce ETF (EBIZ): This fund has net assets of $55.98 million and focuses on 41 e-commerce companies, with top holdings including Shopify (5.12%) and Amazon (4.07%), and has surged 21.7% year to date [13] - Vanguard Consumer Staples ETF (VDC): With net assets of $7 billion, it includes 106 consumer staple stocks, featuring Walmart (14.11%) and Costco (12.78%) among its top holdings, and has risen 0.3% year to date [14]