HoldingsOverstock.com, Wayfair, Kohls, American Eagle Outfitters, and more
Managed byState Street Global Advisors
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.
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