Despite the weak start and six less shopping days, the 2013 U.S.
holiday season - touted the most crucial since the 2008 recession
-turned out stronger than most analysts' expectation. This is
largely thanks to huge discounts, increased promotional activities
and long-hour store openings by most retailers that succeeded in
attracting budget-constrained consumers to shop more (read:
3 Hot Sector ETFs for 2014
Total U.S. retail sales (during the period of November 1-December
24) climbed 3.5% year over year, according to the latest data from
MasterCard Advisors' SpendingPulse. This represents the highest
increase in three years.
Jewelry and children's apparel were the top two performing
categories. Sales of holiday-related categories such as clothing,
electronics and luxury goods, rose 2.3% during the period.
Most of the sales were driven by a surge in e-commerce as customers
focused more on online purchases. As per
the Web analytics company firm - ComScore
- online sales were up nearly 10% for the first 52 days of November
and December from $38.91 billion last year.
The heavy online traffic was seen on Cyber Monday (December 2) with
record $1.735 billion sales, closely followed by sales of $1.41
billion on December 3 and $1.40 billion on 'Green Monday' (December
Top ETF Deals for Cyber Monday
For the holiday season year-to-date, the categories that enjoyed
the highest sales include video game consoles and accessories,
apparel and accessories, consumer electronics, computer hardware,
and home and garden products. Thanks to this, some consumer ETFs
were clearly the biggest beneficiaries this holiday season.
While most of these generated more than 4% returns during this
period, the following three ETFs were the biggest gainers and
outpaced the broad market funds. The trio has top Zacks ETF Ranks
too, suggesting bullish trends in the coming months as well.
Given this, any of these could be better plays in the recovering
economy and may continue to outperform in 2014 (see:
all the Consumer Discretionary ETFs here
PowerShares Dynamic Media Portfolio (
This fund tracks the Dynamic Media Intellidex Index and seeks to
offer capital appreciation by investing in the companies that are
selected on a variety of investment merit criteria, including price
momentum, earnings momentum, quality, management action and value.
This approach results in a small basket of 30 media stocks, which
are somewhat concentrated in its top 10 firms with nearly 45% of
), Dish Network (
) and Time Warner (
) are the top three firms with a combined share of 15%. The product
has amassed $325.3 million in its asset base while it trades in
solid volume of more than 142,000 shares a day. The ETF charges 63
bps in annual fees and added nearly 9.4% this holiday season (read:
Media ETF Leading the Consumer Sector Higher
S&P SmallCap Consumer Discretionary Portfolio (
This fund provides exposure to the small cap segment of the
consumer discretionary space by tracking the S&P SmallCap 600
Capped Consumer Discretionary Index. The ETF holds 101 securities
in its basket that are well spread out across the components as
each security holds less than 3.6% of the assets (read:
Time to Bet on This Small Cap Consumer ETF
Within the consumer discretionary sector, specialty retail takes
the top spot with roughly one-third of the total, followed by
modest allocations to restaurants, and apparel and luxury goods.
The product has attracted $119.7 million in AUM while sees light
volume of just 11,000 shares per day. The ETF charges 0.29% in
expense ratio and returned over 7% this holiday season.
Market Vectors Gaming ETF (
This product follows the Market Vectors Global Gaming Index, which
measures the performance of the global gaming industry. Holding 45
securities in its basket, the fund is guilty of concentration at
55% of total assets with largest allocations going to Las Vegas
), Sands China and Wynn Resorts (
While casino and gaming take the top spot with 90% share,
recreational products, investment companies, REIT and software
programing also take portions of the basket. From a country look,
American companies dominate the fund's portfolio at 44.5%, followed
by China (14.6%), Malaysia (11.8%) and Australia (8%).
The fund has AUM of $81.3 million and average daily volume of
nearly 21,000 shares per day, suggesting an additional cost for the
fund beyond the expense ratio of 0.65%. BJK rose over 6% during the
holiday season (read:
Beat the Market with Smart Beta ETFs
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MKT-VEC-GAMING (BJK): ETF Research Reports
CBS CORP (CBS): Free Stock Analysis Report
LAS VEGAS SANDS (LVS): Free Stock Analysis
PWRSH-DYN MEDIA (PBS): ETF Research Reports
PWRSH-SP SC C D (PSCD): ETF Research Reports
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