6 ETF Deals for Black Friday
The holiday season has kicked off with Thanksgiving Day, and now it’s time for Black Friday — one of the busiest shopping days of the year. Retailers are splurging on promotions, early-store openings, heavy discounts, and free shipping on online purchases to lure customers.
According to the National Retail Federation, more than 165 million Americans are expected to shop in stores and online during the Thanksgiving weekend (spanning five days from Thanksgiving Day through Cyber Monday). Of them, 39.6 million planned to shop on Thanksgiving Day while 114.6 million will likely go for Black Friday. On Small Business Saturday 66.7 million will go shopping and 33.3 million are expected to do so on Sunday. About 68.7 million are expected to take advantage of online bargains on Cyber Monday.
Younger consumers are significantly more likely to shop over the Thanksgiving weekend. Of ages 18-24, 88% are likely to shop and particularly enjoy the social aspect while 84% of those ages between 25 and 34 plan to shop. There is an almost even split of people who plan to start their shopping in-store (47%) compared with those who intend to splurge online (41%).
According to Adobe, Black Friday sales to reach $7.5 billion this year, representing a rise of 20.5% from 2018 (read: October Retail Sales Show Subdued Strength: ETFs in Focus).
Black Friday sales bonanza both online and in stores is already in full swing as a number of retailers have already perked up their deals to lure customers. We have highlighted some of the best deals from the retailers below.
Amazon AMZN is ahead of all retailers having kicked off Black Friday deals week on Nov 22. The best deals consist of discounts on the brand's own products like the Amazon Echo, Amazon Fire TV Stick and the Kindle ereader - as well as some great TV, audio and laptop deals from folks like LG, Samsung, Acer, Sennheiser and more. The e-commerce giant is offering up to 50% off on several products including electronics with Amazon Echo Show 8 at $79.99 (Save $50) and Amazon Music Unlimited for four months at 99 cents (Save $39),
Wal-Mart WMT, the world's largest retailer, started online deals at walmart.com at 7 p.m. on Nov 27 and at 6 p.m. in stores on Thanksgiving. Some of the best deal includes Google Home Mini and Chromecast bundle for $38 (save $36) and Apple AirPods for $129 (save $30) (read: Gearing Up for Holiday Season: Amazon Versus Walmart ETFs).
Target TGT continued to have occasional good offers every few days after the retailer’s Black Friday preview sale ended on Nov 9. The real Target Black Friday sale has started and will end on Nov 30. The best deals currently includes Nikon D3500 DSLR dual-lens camera kit with bag bundle for $400 (save $400) and Buy two, get-one-free toys, games and books.
Kohl’s KSS has a surprising amount of great Black Friday deals this weekend with awesome discounts on gaming consoles, games, gaming accessories, and more. The retailer is throwing in $15 of Kohl's Cash for every $50 spending from Nov 25-29 and the cash earned during this period must be spent from Nov 30 to Dec 9. Further, the company is offering an additional 15% off both in-store and online with the coupon code THANKS15 on select products.
Best Buy BBY has started offering Black Friday deals in-stores on Nov 28 at 5 p.m. while online sales began earlier this week. The best deals include UE Boom 2 LE Portable Bluetooth Speaker for $70 (save $110) and Microsoft Surface Pro 7 for $599 (save $360). GameStop's sales kicked off early on Nov 24 on items like PlayStation 4 systems, Xbox One systems, video games and accessories, and will run through Dec 2.
ETFs to Tap
All these attractive offers would boost retail sales and lead to a surge in stock prices in the days to follow. While an individual stock is certainly a great option to tap the Black Friday deals in the investment world, a basket approach through ETFs is diversified and more cost effective at lower risk. Below we have highlighted retail ETFs that investors should stock up this weekend.
Amplify Online Retail ETF IBUY
This ETF has attracted $239.9 million to its asset base and offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund is home to 47 stocks with each accounting for less than 3.7% of the assets. In terms of industrial exposure, online retail makes up for 59% share while marketplace and travel round off the next two spots.
SPDR S&P Retail ETF XRT
With AUM of $213 million, this product tracks the S&P Retail Select Industry Index, holding 85 securities in its basket with each accounting for no more than 2% of assets. Apparel retail takes the top spot at 21.4% share while automotive retail, Internet & direct marketing retail, and specialty stores round off the next three spots with a double-digit allocation each. The fund charges 35 basis points (bps) in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Bet on Brick-and-Click Retailing With These ETFs).
VanEck Vectors Retail ETF RTH
This fund provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index. It is highly concentrated on the top two firms — Amazon AMZN at 19.6% and Home Depot HD at 11.1% — while the other firms hold no more than 9.2% share. The product has amassed $105.2 million in its asset base and charges 35 bps in annual fees. RTH has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
ProShares Online Retail ETF ONLN
This ETF focuses on global retailers that derive significant revenues from online sales. It tracks the ProShares Online Retail Index, holding 24 stocks in its basket with highest concentration going to the top firm, Amazon with one-fourth share. American firms make up three-fourth of the portfolio, while China accounts for 20.6% share while Argentina based companies have a minor share at 2.4%. ONLN has accumulated $22.5 million in a month and charges 58 bps in annual fees (read: ETFs to Tap Alibaba's Stunning Hong Kong Debut).
First Trust Nasdaq Retail ETF FTXD
The fund follows the Nasdaq US Smart Retail Index and holds 49 stocks in its basket. It is moderately concentrated across components, with each firm holding less than 8.2% of the assets. While specialty retail makes up for a substantial 47% share, departmental stores and hypermarkets round off the next spots. FTXD has accumulated $8.7 million in its asset base and has an expense ratio of 0.60%. The ETF has a Zacks ETF Rank #3.
Invesco Dynamic Retail ETF PMR
This fund follows the Dynamic Retail Intellidex Index. In total, the product holds 30 securities with each holding less than 5.5% of the assets. In terms of industrial exposure, specialty retail takes the largest share at 53%, while departmental stores, hypermarkets, Internet & direct marketing also round off the next spots. The fund has accumulated just $8.5 million in its asset base and charges 63 bps in fees per year. It has a Zacks ETF Rank #3 with a Medium risk outlook.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
First Trust NASDAQ Retail ETF (FTXD): ETF Research Reports
SPDR S&P Retail ETF (XRT): ETF Research Reports
Invesco Dynamic Retail ETF (PMR): ETF Research Reports
VanEck Vectors Retail ETF (RTH): ETF Research Reports
Amplify Online Retail ETF (IBUY): ETF Research Reports
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
Kohl's Corporation (KSS): Free Stock Analysis Report
ProShares Online Retail ETF (ONLN): ETF Research Reports
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