Retail Industry ETF

A A A

DEFINITION

An exchange-traded fund that invests in companies whose main business is selling retail merchandise to consumers, so as to replicate the performance of an underlying retail index. The companies included in such an ETF include brick-and-mortar retailers as well as online merchants, and span a wide range of industries.

INVESTOPEDIA EXPLAINS

The performance of a retail industry ETF is significantly correlated to the prevailing level of consumer confidence in the economy. Such an ETF will do well when the economy and consumer spending are robust, and will fare poorly when they are in the doldrums. Retail industry ETFs in the U.S. would generally include household names such as Wal-Mart and Target.


RELATED TERMS
  1. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, that enables ...
  2. Gaming Industry ETF

    A sector exchange-traded fund that invests solely in gaming companies, so as ...
  3. Brick And Mortar

    A traditional "street-side" business that deals with its customers face to face ...
  4. Click And Mortar

    A type of business model that includes both online and offline operations, which ...
  5. Big Box Retailer

    A retail store that occupies an enormous amount of physical space and offers ...
  6. Factor Investing

    An investment strategy in which securities are chosen based on attributes that ...
  7. Reverse Gold ETF

    Exchange traded funds that are designed to trade in a direction that is diametrically ...
  8. Investment Fund

    A supply of capital belonging to numerous investors that is used to collectively ...
  9. Short Gold ETF

    An exchange traded fund that seeks to profit from negative changes in the price ...
  10. Shariah-Compliant Funds

    An investment fund which meets all of the requirements of Shariah law and the ...
Related Articles
  1. Consumer Spending As A Market Indicator
    Markets

    Consumer Spending As A Market Indicator

  2. Analyzing Retail Stocks
    Fundamental Analysis

    Analyzing Retail Stocks

  3. Are Structured Retail Products Too Good ...
    Options & Futures

    Are Structured Retail Products Too Good ...

  4. Choosing The Winners In The Click-And-Mortar ...
    Investing

    Choosing The Winners In The Click-And-Mortar ...

  5. How Oil ETFs React To Falling Energy ...
    Chart Advisor

    How Oil ETFs React To Falling Energy ...

  6. Oil Chart Suggests That Now Is The Time ...
    Chart Advisor

    Oil Chart Suggests That Now Is The Time ...

  7. How To Invest In Corporate Spin-offs
    Chart Advisor

    How To Invest In Corporate Spin-offs

  8. Why You Should Pay Attention To Africa ...
    Stock Analysis

    Why You Should Pay Attention To Africa ...

  9. Boost Your Portfolio Yield With Alternative ...
    Mutual Funds & ETFs

    Boost Your Portfolio Yield With Alternative ...

  10. This Base Metal Is Precious To Astute ...
    Chart Advisor

    This Base Metal Is Precious To Astute ...

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center