Love to shop? You’re not alone. Retail is one of the biggest industries in the world, with global revenue of more than $22 trillion, including online and offline sales of travel services, cars, fashion, home furnishings, food, electronics, entertainment and more. Instead of just spending your money with the leading retailers, you could be investing in them. If the thought of all that money ringing through cash registers and electronic shopping carts sounds compelling, check out Retail Therapy.
What’s this investment all about?
Retail Therapy is an ‘ETF’, or ‘exchange-traded fund’, officially called the SPDR® S&P® Retail ETF. This investment is made up of companies that feed the world’s insatiable desire for consumer goods. Americans’ disposable income recently hit an all-time high, so there’s more money to spend on everything from Marc Jacobs to granola.
What companies does this investment include?
A major holding is Netflix, the innovative streaming entertainment network with more than 65 million subscribers in 50 countries. Another is CarMax Inc., which fuels America’s love affair with cars. And then there’s Amazon, which sells just about everything under the sun to consumers, but also has a multi-billion dollar cloud computing service.
Who is this investment for?
Retail Therapy could be for you if you think innovative online and offline retail companies like Amazon, TripAdvisor and Costco stand to keep growing. Or if you want to feel better next time you go on a shopping binge, knowing there could be something in it for you besides another pair of socks or sunglasses. Just keep in mind that this is an investment in one industry, so it could be a good addition to a diversified portfolio, but it shouldn’t be your only investment.
Why did it make the cut for Stash?
Take a look at the underlying fund. While the past doesn’t predict the future, this fund has performed well over the last five years,. It has a low, 0.35% expense ratio, so the fund isn’t paying its management too much, or spending too much on marketing or operations. And it’s run by State Street—which oversees 11% of all the money invested in the world, for nonprofits, other companies, and families’ retirement and college expenses.
This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. StashInvest assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.
Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented.
Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. StashInvest does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis StashInvest uses from third party sources is believed to be reliable, StashInvest does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. StashInvest does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become StashInvest Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures
Note: These are just a couple of the investment choices available on Stash and may not be suitable for everyone. Depending on your risk profile, you may not see the investments on Stash. See our Disclosures.