In this article, we discuss 5 best retail ETFs to buy. If you want to read our discussion on the retail industry, head over to 10 Best Retail ETFs To Buy.
5. Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY)
5-Year Share Price Performance as of April 1: 56.73%
Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) aims to match the price and yield performance of the Consumer Discretionary Select Sector Index. This index represents the consumer discretionary sector of the S&P 500 Index. The fund provides targeted exposure to companies across specialty retail, broadline retail, hotels, restaurants and leisure, textiles, apparel and luxury goods, household durables, automobiles, automobile components, distributors, leisure products, and diversified consumer services. Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) ranks 5th on our list of the best retail ETFs. The fund was established on December 16, 1998. As of April 1, 2024, the ETF has a gross expense ratio of 0.09%, and a portfolio of 53 stocks. The assets under management came in at $20 billion.
Tesla, Inc. (NASDAQ:TSLA) is one of the top holdings of the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY). Morgan Stanley has a long-term outlook on Tesla, Inc. (NASDAQ:TSLA), setting a price target of $320 on March 22. This target comprises separate valuations for Tesla’s automotive hardware, auto-related software and services, and energy-related businesses. Analyst Adam Jonas noted Tesla’s expertise in computer vision, machine learning, AI, and robotics, which could have numerous commercial applications. However, Morgan Stanley hasn’t included these potential revenue streams in its current model or valuation.
According to Insider Monkey’s fourth quarter database, 82 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA), compared to 81 funds in the preceding quarter.
Alger Spectra Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2023 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Tesla is a transportation company that is setting the pace for industry innovation, in our view. During the quarter, the company reported weaker-than-expected fiscal third quarter earnings, where gross margins were negatively impacted by factory downtime and ramping production volumes at new manufacturing plants. However, the company noted that they remain confident by the amount of data that Tesla’s established and growing fleet of vehicles has gathered, which may bode well for the company’s full self-driving capabilities.”
