The Retail ETF Is Banking On Positive Reports From Retailers This Week

“Several retailers are reporting earnings this week and positive sentiment from these companies will continue to fuel the year-to-date rise in the SPDR S&P Retail ETF (NYSE: XRT). (XRT) rose by 16% in the year through March and this performance was strong enough to earn it a spot on my list of the best ETFs after the first quarter of 2010. If retailers continue to report well, this will ensure that the fund’s progress will continue,” Don Dion Reports From The Street.

Dion goes on to say, “Ruby Tuesday (NYSE: RT), the restaurant chain, reports earnings on Wednesday. A positive report and outlook from this company will show that families and individuals are willing to pay more to eat out as opposed to saving money by cooking at home. This also will show that consumers are more confident about their current and future levels of income and will be able to afford to shop more.”

“Also reporting this week are two other consumer discretionary companies, Bed Bath & Beyond (NASDAQ: BBBY) and Pier 1 Imports (NYSE: PIR). Bed Bath reports on Wednesday; Pier 1 on Thursday. Both of these companies sell products for the home and a positive outlook from them will indicate that Americans are ready to spend additional money on improving the interiors of their living spaces. Like eating out at Ruby Tuesday, buying home embellishments from (BBBY) or (PIR) is a purchase that individuals can put off if they are having financial difficulties. Therefore, good earnings reports from these companies will show that consumer sentiment is improving and that retailers may benefit from an end to recessionary personal consumption habits,” Dion Reports.

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Here are some details on the SPDR S&P Retail ETF (XRT) including the holdings within the ETF below:

The SPDR® S&P® Retail ETF (XRT) seeks to replicate as closely as possible, before expenses, the total return performance of the S&P Retail Select Industry® Index (ticker: SPSIRETR).  Our approach is designed to produce portfolios with low portfolio turnover, accurate tracking, and lower costs.

Related posts:

1. Will Retail Shoppers Prove Analysts Wrong On The Retail ETF?
2. We’re In a Recession, So Why Hasn’t the Retail ETF Gotten the Memo?
3. This Retail ETFs Balanced Approach Means That No Single Company Will Lead The ETF By The Nose

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