Stocking Up On The SPDR S&P Retail ETF (NYSE:XRT)

, up from 5 per cent the previous week. Most benchmark indexes also turned Weak Bullish, the first taste of this shifting trend since the beginning of February when the market experienced a setback. A correction is clearly in the works again as the S&P 500 index closed the week 9 per cent below its high of late April,” Skot Kortje Reports From The Globe and Mail.

Kortje goes on to say, “Hit hardest last week were small-capitalization stocks – the Russell 2000 index is now 12 per cent below its April 26 high. But divergence from a bullish trend in the consumer cyclical, industrial and transportation sectors might hold the best opportunity for short-term traders looking for a rebound. Last week’s precipitous fall dropped these sector indexes to their 13-week moving average trend lines, but all remain at least 10 per cent above their level of three months ago, handily outperforming the broad U.S. stock market. Investors willing to stand up to the bearish turn in the stock market believe the global economic recovery has some legs, and that the U.S. consumer is slowly regaining confidence. For that reason, the performance of retail stocks is an important entry on the tip sheet of investors.”

“Despite continued high unemployment and consumer debt concerns, the market has been giving a nod to recovery, with bullish-trending retail stocks outpacing the S&P 500 for most of the past year and a half. Bullish investors undeterred by stock market jitters about sovereign debt problems in Europe will be interested in buying the pullback of retail stocks. The SPDR S&P Retail exchange-traded fund (NYSE:XRT) traded heavily last week – double its weekly average and its most active trading sessions ever. The fund dropped 7 per cent, just slightly more than the S&P 500 index. Retail apparel stocks account for 32 per cent of holdings, representing the largest weighting in the fund. The next largest weighting is in specialty retail and automotive stocks, both of which account for less than half the apparel stocks – so the clothing retailers’ relative strength is an important indicator of the fund’s resilience at the trend line,” Kortje Reports.

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Here are some more details we put together on the SPDR S&P Retail ETF (NYSE:XRT) including a list of the holdings within the ETF below:

SPDR S&P Retail (NYSE:XRT)

The SPDR® S&P® Retail ETF 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.