US Retail ETF
The US economy is very depended upon consumer spending whereas most global economies are export orientated. In the United States however consumers still are the major driving force of the economy.
The retail industry is therefore a large and very mature market sector. Another point to mention is that policy makers in the US are very much focused on the well-being of the companies that are active in retailing.
A big difference with many European countries where national governments are more export orientated and they do not bother much about the national retail sector. Of course in the US one of the major concerns is whether the American public has enough money to spend.
The source of this spending power in the US is traditionally a credit card, also a major difference with many other countries. Plastic money and buying on credit are the real driving forces behind the US economy.
That engine needs to keep on running and this engine requires low interest rates and enough job opportunities. High interest rates and high unemployment figures are not helping American retail businesses and the same can be said about this US retail ETF.
SPDR S&P Retail ETF
This particular SPDR retail ETF tracks the S&P Retail Select Industry index. More than 100 stocks of American retailing companies are included in this US retail ETF.
You will find a myriad of retailing businesses, luxury shops, specialty stores, automotive retailers, online companies, supermarkets, pharmacy chains and food companies.
Striking is the fact that each of the 100 companies has more or less the same weighing of 1% in this US retail ETF so you will not find dominating companies which is a good sign.
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SPDR S&P Retail ETF info:
ETF provider: SPDR (State Street Global Advisers)
Exchange: NYSE Arca