Can Carl Icahn Revitalize Retail ETFs? [Family Dollar Stores, Inc., Five Below Inc, Dollar General Corp., Dollar Tree, Inc.]

In terms of sector holdings, apparel retail takes the top spot at one-fourth share.  The fund has amassed about $607 million in its asset base. The ETF charges 35 bps a year in fees.

XRT added 0.29% in the key trading session and 2.62% last week. The ETF has a Zacks ETF Rank of 2 or ‘Buy’ rating with Medium risk outlook.

Market Vectors Retail ETF (NYSEARCA:RTH)

This fund follows the Market Vectors US Listed Retail 25 Index and holds about 26 stocks in its basket with AUM of $28.5 million. Expense ratio comes at 0.35%. The product is heavily concentrated on the top 10 holdings with more than 60% of assets with the largest allocation to Wal-Mart. Discount retailer Dollar General accounts for 3.14% of the fund.

Sector wise, specialty retail occupies the top position with less than one-third share. RTH added about 1.94% last week and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook.

Bottom Line

Thanks to being beaten down this winter, consumer discretionary or retail stocks have some scope for a run-up in the coming days. The tone of retailers is broadly muted, but the sector is still expected to log 8.5% earnings growth in 2014 and 14.3% in the following year. This should encourage investors with a strong appetite for risk to invest in retail ETFs such as the ones described above.

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